Construction in Jerusalem will continue as usual: Netanyahu

Israeli Prime Minister Benjamin Netanyahu has rejected US demands for a total freeze on settlement building in the West Bank. He is quoted as saying he had told Washington he would instead think about scaling down construction. US Mid-East envoy George Mitchell is in the region to finalise terms for renewed peace talks. The Palestinians have said they will not take part unless Israel stops all construction in its settlements. The US hopes the Israeli and Palestinian leaders can meet on the sidelines of the UN General Assembly meeting in New York later this month. After talks with Israeli President Shimon Peres on Sunday, Mr Mitchell said they were working hard to reach agreement on many outstanding issues. Mr Netanyahu laid out his position on settlement construction to the Knessets Security and Foreign Affairs committee on Monday. He told that Mr Mitchell had requested a complete halt to the building work. Jerusalem is not a settlement, and we made clear that we will build 2,500 housing units which are already in construction, Mr Netanyahu is quoted as saying by a parliamentary official. Israel Palestine talks have been ceased since December.