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Paris: Palestinian President Mahmoud Abbas on Monday urged Israel to cease "all settlement activities" in Palestinian territories.
Abbas made the statement at the start of a major donors' conference in Paris where representatives from more than 60 countries gathered to boost aid for Palestinians.
Abbas said his government would keep its peace obligations, and that Israel must do the same.
Under the US-backed "road map" peace plan, Israel is required to freeze the construction of Israeli settlements, while the Palestinians must disarm militants.
"It's the moment of truth," Abbas said. "I expect them to stop all settlement activities, without exceptions."
Palestinian negotiators have said Israeli plans to build new homes on Occupied Jerusalem could cloud the next round of peace talks on December 23.
"We need a clear-cut Israeli decision concerning this issue," said Palestinian spokesman Nabil Abu Rdainah.
US Secretary of State Condoleezza Rice said the dispute was "ever more reason that it's time to get an agreement".
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