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Source: http://www.pmo.gov.il/PMOEng/Communication/Spokesman/2010/11/spokejerusalem091110.htm
Netanyahu: Jerusalem Is Not a Settlement
(Prime Minister's Office) Prime Minister Netanyahu said in a statement Tuesday: "Jerusalem is not a settlement; Jerusalem is the capital of the State of Israel. Israel has never accepted upon itself restrictions of any kind on construction in Jerusalem." "Israel sees no connection between the diplomatic process and planning and building policy in Jerusalem, which has not changed in 40 years. All Israeli governments in the past 40 years have built in all parts of the city. During this period, peace agreements were signed with Egypt and Jordan, and for 17 years, diplomatic negotiations have been conducted with the Palestinians. These are historical facts. Construction in Jerusalem has never hindered the peace process." "The disagreements with the U.S. over Jerusalem are well-known. They are not new and have continued for 40 years. We hope to overcome them and continue to advance the diplomatic negotiations."