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U.S. Backtracks on Peres-Powell Deal over Settlements
(Ha'aretz) Aluf Benn - The U.S. administration does not recognize the understandings relating to "natural growth" in the settlements that were worked out between former Foreign Minister Shimon Peres and U.S. Secretary of State Colin Powell in June 2001. In a message conveyed to Jerusalem at the weekend, a senior Bush administration official said that the understandings were "invalid." According to the understandings, no new settlements would be established and no more land would be appropriated for building purposes. Construction would be frozen beyond the built-up areas of the settlements, but the freeze is contingent on Palestinian implementation of the remaining clauses in the Mitchell Report. Israel has made clear to the United States that construction will continue in the existing areas of the settlements to meet "the ongoing needs" of the communities. A statement from the Prime Minister's Bureau said Israel was adamant about upholding the Peres-Powell understandings: "To the best of our knowledge, this is also the position of the White House." The director of the Prime Minister's Bureau, Dov Weisglass, will meet Monday with National Security Advisor Condoleezza Rice and will raise Israel's request for $4 billion in military aid, plus U.S. loan guarantees for $10 billion.