Egypt: Israeli freeze must include east Jerusalem

Egypt's foreign minister says east Jerusalem must be included in a freeze of Israeli settlement activity before Middle East peace talks can restart.

Ahmed Aboul-Gheit told reporters in Stockholm on Friday that Jerusalem is Arab "and it will continue to be so."

He said the Arab world expects the area to be included in a moratorium on Israeli settlements, and added that talks with the Palestinians will last as long as construction in settlements is halted.

"If the Israelis announced that the freeze will last six months, then negotiations will last six months as well," he stressed.

These statements came a day after it was made public that plans for the construction of 150 Jewish housing units in Palestinian neighborhoods in Jerusalem were presented in the first half of 2009.

The report, published by the Ir Amim organization said this addition would add some 750 Jewish residents to the 2,000 already living in Arab neighborhoods in east Jerusalem.

"These settlements create a continuous Jewish population in neighborhoods surrounding the Old City, and place settlers in an area that is at the heart oft the Israeli-Palestinian conflict," the report said.

German Chancellor Angela Merkel is also in favor of stopping settlement construction, and in a meeting with Israeli Prime Minister Benjamin Netanyahu on Thursday said, "We feel construction in settlements must be stopped so we can seize this window of opportunity that will be opened this autumn.

"We believe the two-state solution is the right solution. We think the Palestinians must make their own moves. Palestine should be for the Palestinians and Israel should be for the Israelis."

At a joint press conference after their meeting, Netanyahu denied all reports saying he had agreed to a settlement freeze.

"There are no agreements and no decisions, just unfounded rumors. Attempts are being made to bridge the gaps, but reports of decisions having been made are simply unfounded," he said.