PMO: Construction in East Jerusalem will continue

Prime Minister Ehud Olmert's office denied on Monday reports that construction in East Jerusalem has been halted.

"We categorically deny these reports regarding the cessation of construction. No such decision has been made and the information provided on this matter is unfounded," Olmert's office said in a written statement.

The statement further said that it has been made clear to all international parties, including US President George W. Bush, that Israel has no intention of freezing construction projects in east Jerusalem.

Earlier Monday, Jerusalem Mayor Uri Lupolianski slammed the government's reported intention to suspend construction in the capital's eastern Jewish neighborhoods.

"Israel must not become the first country in the world to turn its capital into an illegal outpost," Lupolianski said.

"This is an illegal decision which stands in contradiction to the government's own decisions, as stipulated in the Jerusalem Law," Lupolianski added, saying that the municipality would continue to build in all areas in the capital.

'The truth has come to light'

MK Reuven Rivlin (Likud), who initiated a discussion at the Foreign Affairs and Defense Committee on the issue Monday, said that according to the information given by the government representatives at the meeting, any new construction project in Jerusalem required a special permit from the Prime Minister's Office.

"The truth has come to light in all its gravity," said Rivlin. "There will be no construction outside the Green Line, even in sovereign Israeli territory, including Jerusalem's neighborhoods.

"The prime minister has taken liberties without awaiting the government's approval or a Knesset discussion, and in contradiction with the road map, which recognizes Israel's right to expand the settlement blocs in accordance with natural growth," he stated.

Rivlin added that there was a consensus among the Zionist parties at the Knesset, excluding Meretz, that these areas should remain under Israeli sovereignty in any future agreement.

On December 30, Prime Minister Ehud Olmert issued a letter to the defense, housing and agriculture ministers clarifying that as of now, any construction in the settlements requires his and the defense minister's approval.