Report: Israel, US hold talks over construction in settlements

Israeli officials confirmed Monday that the government is in quiet talks with the United States in search of a "creative" solution that will allow at least some limited construction to take place after Israel's 10-month moratorium ends on Sept. 26.

US. State Department spokesman P.J. Crowley said Washington understands the issue's importance and will make sure it is discussed at the start of negotiations. "We are very mindful of the Palestinian position, and once we are into direct negotiations we expect that both parties will do everything within their power to create an environment for those negotiations to continue constructively," he said. (AP)