The Interior Ministry has given tentative approval to a Jerusalem municipal plan to build nearly 1,000 new homes in the east Jerusalem neighborhood of Har Homa, the city said Wednesday. The proposal, which is now up for public objection, would see the construction of 920 homes in the outlying Jerusalem neighborhoodÂ which was constructed over the last decade despite opposition from the international community. The east Jerusalem expansion plan was previously approved by the city last year. The neighborhood, which overlooks Bethlehem, is located within the municipal borders of the city built on land annexed by Israel after the 1967 Six Day War. Israel differentiates between construction in east Jerusalem and building in the West Bank, but the international community does not make a distinction between the two areas and views both as settlements. In all, about 180,000 Israelis live in Jewish neighborhoods of east Jerusalem. According to a 2000 peace proposal put forward by former US president Bill Clinton and rejected by the late Palestinian leader Yasser Arafat, Jewish neighborhoods of Jerusalem would remain under Israeli control, while Arab sections would be part of the Palestinian state. Privately, Palestinians concede that Israel will retain Jewish neighborhoods of east Jerusalem as part of a final peace agreement, but contend that building there now severely hampers peace talks.