Israel green lights construction of 1,500 East Jerusalem homes

Aug 11, 2011, 9:46 GMT

Jerusalem - Israeli Interior Minister Eli Yishai gave the green light Thursday to build 1,500 apartments in occupied East Jerusalem and thousands more homes are expected to be given the construction go-ahead soon.

The initial approval for the construction had been given last year, during a visit to Israel by US Vice-President Joe Biden, Interior Ministry Spokesman Roei Lachmanovich said.

The approval of the project, in March 2010, caused a major diplomatic rift between Israel and the US.

Interior Ministry officials said the construction green light given Thursday was one of Yishai's solution to the affordable housing crisis currently gripping Israel, which has seen thousands of people take to tent encampments to protest the rising costs of homes.

Yishai last week approved the construction of 900 homes in another East Jerusalem location, drawing the ire of the European Union and the US.

Israel regards East Jerusalem, captured from Jordan in the 1967 war and effectively annexed shortly afterward, as part of its 'eternal, undivided' capital.

Palestinians however want it as the capital of their future state and have said they will not resume peace talks if Israel continues to build there and in West Bank settlements.