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However, Interior Minister Eli Yishai, whose office issued the order for the new homes, did agree to speak to The Associated Press about other issues, such as the need to calm tensions with the US
"I am very sorry that there is an escalation now and we are taking many measures to calm this," he said. However, he added that "Israel is independent and can do what it thinks is right."
An AP reporter was poked in the back by a Yishai aide when he asked the minister about the construction plan . The minister then abruptly ended the interview, removing a microphone from his lapel.
The Obama administration's Mideast peace envoy canceled a trip to Israel and the West Bank this week due to what the State Department said were scheduling conflicts.
Clinton played down a connection to US pique, but administration officials acknowledged a link, saying there was no point in sending former Sen. George Mitchell now because Israel had not budged on the US demand to roll back the planned settlements.
Clinton restated US "dismay and disappointment" with the announcement but disputed the perception of the relationship in crisis.
"I don't buy that," she said.
There are no current plans for Netanyahu to meet with Obama before his departure for his overseas trip, nor with Biden.
The Obama administration sees the next play as Israel's, which now must demonstrate its seriousness about talks with action, said a senior administration official, speaking on condition of anonymity to discuss sensitive diplomatic matters more freely. The official said the US position on settlement expansion has not changed.
Recognizing the difficult domestic politics that accompany the latest fracas, the administration is aggressively reaching out to constituency groups and to Capitol Hill to explain its position, the official said.
Rising violence on the streets of Jerusalem accompanied the political maneuvering. Palestinians are growing increasingly frustrated with the lack of progress toward achieving a homeland of their own, and unsubstantiated rumors of Jewish encroachment on their holy sites gave way to the heaviest clashes in months.
The Obama administration's Mideast peace envoy canceled a trip to Israel and the West Bank this week due to what the State Department said were scheduling conflicts.
The Israeli-US tiff was seen by Arab officials as an opportunity to push Washington to exert more pressure on Israel, and said it bears out their claim that Israel is sabotaging talks.
"Israel must know the international community is angry," Egypt's Foreign Minister Ahmed Aboul Gheit said Monday.
"There is a US-Israel faceoff, and an American anger obvious in the American statements," he added. "Let's leave a chance for this argument to see how it will brew."