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Occupied Jerusalem: Israel’s continued settlement plans could hurt peace negotiations in the region, US Secretary of State Condoleezza Rice said on Sunday.
Rice made the comments ahead of meeting with Israeli Foreign Minister Tzipi Livni.
"At a time when we need to build confidence between the parties, the continued building and the settlement activity has the potential to harm the negotiations," she told reporters.
On Saturday, Israel announced plans to construct 1,300 new homes in the occupied West Bank.
Rice, on her sixth trip to the Middle East this year, later travelled to the West Bank city of Ramallah for talks with Palestinian President Mahmoud Abbas and Prime Minister Salam Fayyad.
Israel has repeatedly insisted its projects do not contradict the peace efforts.
"It's clear to everyone that the Jewish neighbourhoods of Jerusalem will remain part of Israel in any possible final status agreement," Olmert spokesman Mark Regev said.
Rice will meet Olmert and Israeli Defence Minister Ehud Barak later in the day. She will also hold three-way talks with the top negotiators in the process: Livni and former Palestinian prime minister Ahmed Qurei.
Meanwhile, Hamas, which strongly opposes the talks with Israel, said "nothing good could come from Rice's visit".
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