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US: Gilo construction is 'counterproductive'

WASHINGTON - The United States said on Tuesday that Israel's decision to approve construction of 1,100 homes in the Jerusalem neighborhood of Gilo - located past the Green Line - was "counterproductive" and urged both Israel and the Palestinians not to take steps which could complicate resumption of direct peace talks.
"We are deeply disappointed by this morning's announcement by the government of Israel," State Department spokeswoman Victoria Nuland said."We consider this counterproductive to our efforts to resume direct negotiations between the parties and we have long urged both parties to avoid actions which could undermine trust, including in Jerusalem, and will continue to work with parties to try to resume direct negotiations."
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