The renewal of the peace process is becoming a more realistic possibility, but the policy regarding continued construction beyond the Green Line
is still unclear. In a letter sent Tuesday, Housing and Construction Minister Uri Ariel
reveals the ambiguity with which Netanyahu is managing the issue: To those within his party, the prime minister says that construction in the territories continues without reservation, but the minister states that there is no coordination between the two men on the subject, and hints that policy on the ground does not allow for the promotion of projects in the settlements.
During the faction meeting for Likud-Beiteinu
on Monday night, Netanyahu was asked about restrictions on building in the territories on the backdrop of the political process. Attendees at the meeting told Ynet that Netanyahu replied there are no restrictions in place on construction, and that Israel had not committed to a freeze. He added that things are coordinate via Housing Minister Ariel.
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Following this, Deputy Minister Danny Danon
requested of Ariel a response in regard to Netanyahu’s statement. Ariel replied to Danon's question in a handwritten letter, "I listened in amazement when the prime minister said at a Likud faction meeting that there were no limits on construction in Jerusalem and that this was coordinated with Minister Uri Ariel.”

Handwritten reply from Ariel to Dannon
“I hereby announce: This never happened," Ariel wrote in response.
Sources close to the minister clarified that tenders for construction in the settlements were not going out for a clear reason – they would not be promoted. A Housing Ministry official added, "We are ready at any time to market thousands of units in Jerusalem,
but the test of reality is that this does not happen. Anyone can draw a clear conclusion why."
Deputy Defense Minister Danon said to Ynet in response, "Given that the prime minister and housing and construction minister say that there is nothing stopping construction in Jerusalem, I expect the release of tenders for construction which are pending approval." The Prime Minister’s Office has not issued a response.
Earlier this week, an aide to Palestinian President Mahmoud Abbas
was quoted in The Wall Street Journal saying that the Israeli government had agreed to a “quiet freeze" of construction in the settlements.
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