US rift unresolved as Netanyahu returns home

The US and Israel failed to heal their deepest dispute in decades as a two-day visit by Israeli Prime Minister Benjamin Netanyahu ended without resolving a rift over new Israeli housing planned in east Jerusalem.

Before leaving the US, Mr Netanyahu said he thought some progress was made in defusing what became an unusually public spat between close allies.

“I think we have found the golden path between Israel’s traditional policies and our desire to move forward toward peace,” the Israeli leader said as he boarded his plane for the trip back home.

American officials said last-minute talks between Mr Netanyahu and US Mideast peace envoy George Mitchell had not ended tensions over Israeli construction in the part of Jerusalem that Palestinians want to be a capital of a separate state.

The officials spoke on condition of anonymity because the closed-door talks were confidential.

US and Israeli officials said the talks were aimed at getting Israeli-Palestinian peace talks back on track.

Mr Netanyahu had extended his stay by hours to work on a deal, but the talks ended at about 8pm local time without any announcements, one official said.

The two sides had hoped to come up with mutually acceptable ideas to improve an atmosphere poisoned by announcements of the new Jewish housing projects.

An Israeli official said Israel wants to see talks with the Palestinians resume quickly. The evening talks were intended to promote that goal, the official said.

Mr Netanyahu twice pushed back his departure from Washington after talks with President Barack Obama, Vice President Joe Biden and Secretary of State Hillary Clinton failed to reach consensus on what Israel could do to repair damage caused by the housing announcements.

During Mr Netanyahu’s frosty visit, “the US made clear it is looking for steps to increase confidence and show commitment to the process”, said Mark Toner, the deputy State Department spokesman.

Earlier yesterday, the Obama administration challenged Israel to explain yet another announced plan to expand Jewish housing in east Jerusalem, the same issue that soured US-Israeli relations ahead of Mr Netanyahu’s three-day visit to Washington this week.

Palestinians claim east Jerusalem as the capital of a future independent state, and the United States sees continued Israeli building there as a provocation that makes peace negotiations harder.

Mr Netanyahu offered no concessions during his visit on an earlier plan to build 1,600 homes for Jews in the disputed part of the city. Mr Netanyahu’s government has refused to back off steady expansion of Jewish neighbourhoods in the majority Arab city section.

An aide to Mr Netanyahu said the prime minister was caught off guard by the announcement yesterday that the Jerusalem municipality approved 20 new apartments for Jews.