Source:
Associated PressWASHINGTON (AP) — The U.S. and Israel failed to heal their deepest dispute in decades as a two-day visit by Israeli Prime Minister Benjamin Netanyahu ended late Wednesday without resolving a rift over new Israeli housing planned in east Jerusalem.
American officials said last-minute talks between Netanyahu and U.S. Mideast peace envoy George Mitchell had not ended tensions over Israeli construction in the part of Jerusalem that Palestinians want to be a capital of a separate state.
The officials spoke on condition of anonymity because the closed-door talks were confidential.
U.S. and Israeli officials told The Associated Press that the talks were aimed at getting Israeli-Palestinian peace talks back on track. Netanyahu had extended his stay by hours to work on a deal, but the talks ended at about 8 p.m. without any announcements, one official said.
The two sides had hoped to come up with mutually acceptable ideas to improve an atmosphere poisoned by announcements of the new Jewish housing projects. An Israeli official said Israel wants to see talks with the Palestinians resume quickly. The evening talks were intended to promote that goal, the official said.
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http://www.usatoday.com/news/world/2010-03-24-us-israel-relations_N.htm?csp=34