J'lem city hall announces plan to construct 600 new homes in E. Jerusalem

Jerusalem's city hall announces its plan to construct 600 new apartments in the neighborhood of Pisgat Zeev, part of the eastern part of the city. Prime Minister Ehud Olmert pledges that Israel will continue to build in east Jerusalem and in heavily Jewish areas of the West Bank that Israel wants to keep in a final peace agreement. But Olmert has stressed that the building will not disrupt peace negotiations. Palestinians have called the construction the greatest obstacle to peace.