RAMALLAH, West Bank (AFP) — US Secretary of State Condoleezza Rice said on Tuesday that Israeli settlements were "not helpful" to the peace process but joined Israeli and Palestinian leaders in saying talks are making progress.
On her latest trip to the region aimed at encouraging the US-backed peace talks, Rice met Israeli Prime Minister Ehud Olmert, Palestinian president Mahmud Abbas and the heads of the negotiating teams.
During the 24-hour visit she also discussed with Abbas for the first time "new" US ideas that could move peace talks forward, his spokesman Nabil Abu Rudeina said.
"I think it's no secret, and I've said it to my Israeli counterparts, that I don't think the settlement activity is helpful to the process," Rice said after meeting Israeli Foreign Minister Tzipi Livni in Jerusalem.
"What we need now are steps that enhance confidence between the parties, and anything that undermines confidence between the parties ought to be avoided."
But she insisted that progress was being made in the negotiations.
"I believe that the parties have succeeded in moving their understandings of what needs to be achieved and indeed their positions somewhat closer together over this period of time," she said.
"So, we will continue to press ahead to get agreement, so that we know what is in Israel and what is in Palestine. That is ultimately the goal."
Her visit coincided with the release of a report by an Israeli watchdog group saying construction of housing for Israeli settlers in the occupied West Bank had nearly doubled since last year.
The Israeli housing ministry "initiated 433 new housing units during the period of January to May 2008, compared to just 240 units during the period January to May 2007," Peace Now said.
The number of tenders for construction in the settlements increased by 550 percent, from 417 housing units compared to 65 units in the same period last year.
In Arab east Jerusalem, occupied and annexed by Israel following the 1967 Six Day War, the number of tenders has increased by a factor of 38, the group said, from 46 units in 2007 to 1,761 in 2008.
The international community considers all settlement projects in the Israeli-occupied territories to be illegal.
Abbas said after his meeting with Rice in the West Bank city of Ramallah that he had again raised the issue of settlements, "which still continue and which without a doubt are the main obstacle in the political process."
But he also insisted the two sides were making progress, saying "just because we have not yet succeeded does not mean we have failed."
His spokesman said Rice and Abbas discussed "new ideas" presented by the US administration.
"The coming weeks will be decisive for the peace process. We are at a crossroads and the efforts and the meetings will continue in order to build on the ideas presented for the first time today," Abu Rudeina told AFP.
A senior Palestinian official who asked not to be named said Israel, the Palestinians and the US administration hope to agree on a "common document" that could be made public by US President George W. Bush at a planned meeting with Abbas in New York on September 21.
Olmert's spokesman Mark Regev stressed that the Israeli premier "will continue efforts to reach a historic agreement by the end of the Bush administration."
Livni for her part played down the impact of the settlement activity.
"I would like to suggest to my partners not to use it as an excuse and I know they are not using it as an excuse but I understand their frustration sometimes," she said.
"There were some small activities but they will not influence the ability (to negotiate), nor the future borders of the Palestinian state," Livni said at the joint news conference with Rice.
Rice's visit was her first since Olmert said on July 30 that he will resign to battle corruption charges after his Kadima party chooses a new leader in September.
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