Netanyahu: Jerusalem not a settlement, but capital of Israel
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But she reaffirmed that U.S. commitment to Israel's security and future was "rock solid" and would not waver and that the U.S.-backed comprehensive peace in the Middle East was the "best way" for Israel's enduring survival.
Clinton's remarks were made as the relationship between the United States and Israel was troubled by the Netanyahu-led government's tough stance on the Jewish settlement activities in the Palestinian-occupied West Bank.
The Obama administration was angry over the Israeli government's approval of 1,600 homes in East Jerusalem on March 9 when Vice President Joe Biden was pushing both Israel and the Palestinians to resume peace talks.
Both Biden and Clinton issued condemnation on Israel for the move, which was described by Clinton as "a deeply negative signal" about Israel's approach to relations with Washington.
The administration has been exerting pressure on the Israeli government and the Palestinian National Authority (PNA) to resume the talks in order that the two sides could reach a permanent peace agreement that leads to the establishment of an independent Palestinian state within two years.
The talks were stalled in December 2008 when Israel launched a massive military campaign against the Islamic Hamas movement in the Gaza Strip.
PNA Chairman Mahmoud Abbas insists that the talks will not be resumed until the Israeli government totally freezes the Jewish settlement construction in the West Bank, while the Israeli side vows to ensure the "natural growth" of the Jewish settlements.
About 500,000 Israelis live in more than 100 settlements in the West Bank, including East Jerusalem.
After Israel's announcement to build more homes in East Jerusalem, the PNA decided to suspend the indirect talks with Israel, which was brokered by U.S. special envoy George Mitchell following tough shuttle mediation between Israel and the Palestinians.
Mitchell has been in Israel and the West Bank for surviving the indirect talks.
Before addressing speech at the AIPAC conference, Netanyahu also met Secretary Clinton and Vice President Biden.
On Tuesday, the prime minister will go to the White House for a meeting with President Barack Obama. The two leaders are expected to exchange viewpoints over promoting Israeli-Palestinian peace talks and extending sanctions on Iran.
According to Israel's Ha'aretz Daily, Netanyahu will also ask Washington to release advanced weapons and sophisticated bunker-buster bombs to Israel in order for a possible strike against Iran's nuclear facilities.
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