Despite ongoing peace talks a political ally of Israeli Prime Minister Ehud Olmert has announced construction plans for hundreds of homes on the West Bank.
The announcement came from the Shas religious party only hours before US President George W Bush was due for arrival in the country to try and breathe life into the peace process.
A spokesperson for the housing ministry denied the announcement but didn’t rule out the construction at a later date. The land in question has been earmarked by the Palestinian authorities as part of a future Palestinian state.