Israeli Prime Minister Benjamin Netanyahu tried Sunday to move beyond a
diplomatic rift with the U.S. even as Obama administration officials
reiterated their displeasure with a controversial housing project in
East Jerusalem.
In his first public comments about last week's tense visit by Vice President Joe Biden, Netanyahu expressed regret for Israel's surprise announcement of 1,600 new housing units to be built on land occupied by Israel since the 1967 Middle East War.
U.S. officials say the move embarrassed Biden and jeopardized efforts to restart peace talks with Palestinians, which was a purpose of his visit to the Mideast. Last year, the administration demanded a freeze in Jewish settlements in the West Bank, and Palestinian leaders have said they would not return to the negotiating table without one.
"There was a regrettable incident, that was done in all innocence and was hurtful," said Netanyahu, who has insisted that he was unaware that the project would be announced during Biden's stay. But Netanyahu downplayed the significance of the growing tensions with the U.S. and announced no plans to suspend the project, as Palestinian and American leaders have urged him to do.
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