http://news.yahoo.com/s/afp/20070115/pl_afp/usmideastdiplomacyrice_070115090420Israel announces settlement expansion as Rice meets Olmert
by Sylvie Lanteaume
Mon Jan 15, 4:10 AM ET
JERUSALEM (AFP) - Israel announced a settlement expansion in the West Bank, dealing a blow to US Secretary of State Condoleezza Rice as she held talks with Israel's premier on jumpstarting the dormant Middle East peace process.
The housing ministry invited bids for construction of 44 new housing units in the largest settlement in the occupied West Bank, Maale Adumim.
The news of the first tenders announced this year came as Rice and Olmert were meeting one-on-one for more than two hours at the premier's Jerusalem residence.
Palestinians and the Peace Now anti-settlement watchdog group warned the move jeopardized the international roadmap to Middle East peace -- a plan that Rice has been pushing on her regional tour.
"Israel must make a choice between peace and settlements. It cannot have both," Palestinian chief negotiator Saeb Erakat told AFP. "It's defying the international community and undermining Secretary of State Rice's peace efforts."