U.S. Warns Netanyahu Against New Construction in Jerusalem

The already rocky relationship between President Obama and Prime Minister Netanyahu was further strained this past week by a recent warning from the U.S. to Israel.

Aluf Benn in Haaretz:

The U.S. administration has issued a stiff warning to Israel not to build in the area known as E-1, which lies between Jerusalem and the West Bank settlement of Ma'aleh Adumim. Any change in the status quo in E-1 would be "extremely damaging," even "corrosive," the message said.

Prime Minister Benjamin Netanyahu has vowed in the past to finally build the controversial E-1 housing project - as have several premiers before him, though none has done so due to American pressure.

Just before his government was installed this spring, the media reported that Netanyahu had reached an agreement with his largest coalition partner, Yisrael Beiteinu, to unfreeze construction in E-1. However, that clause was ultimately not included in the coalition agreement.

Construction in the E-1 area would likely create an even more hostile environment for negotiations with Palestinians, as the project would thwart any chance for a contiguous Palestinian state in the West Bank:

The plans for E-1 call for building 3,500 housing units, along with commercial areas and tourism sites, to create a single urban expanse stretching from Jerusalem to Ma'aleh Adumim and strengthen Israel's hold on East Jerusalem, which would then be completely surrounded by Jewish neighborhoods.

Historically, the U.S. has openly touted their opposition to construction in the area. However, Netanyahu has a track record of his own on the issue:

President Barack Obama's predecessor, George W. Bush, vigorously opposed building in E-1 during the terms of prime ministers Ariel Sharon and Ehud Olmert. Sharon did approve construction of a police station in E-1, and under Olmert, infrastructure work in the area continued. But neither ever approved construction of either the residential units or the commercial buildings, for fear of a confrontation with the United States.

Four years ago, after resigning from Sharon's government, Netanyahu attacked him for giving in to American pressure on E-1. "A sovereign government must build in its eternal capital," he said. "Sharon set a precedent that will lead to the division of Jerusalem."

Now, the Obama administration, deeply entangled in the settlement debate already, has stipulated to Netanyahu that no new construction should take place in East Jerusalem. Of the administration, Benn writes:

It is demanding a moratorium on Jewish building in East Jerusalem until an agreement is reached on the city's legal status, arguing that the cumulative effect of even small-scale projects would destroy any chance of a peace agreement and arouse fierce opposition in the Arab world, especially among East Jerusalem Arabs. Small projects include the construction of 20 apartments in the Shepherd Hotel in the Sheikh Jarrah neighborhood or plans to build new Jewish housing in Silwan.

But Netanyahu is not caving just yet:

At Sunday's cabinet meeting, however, Netanyahu rejected this American stance. "United Jerusalem is the capital of the Jewish people and the State of Israel. Our sovereignty in it is not subject to appeal, and among other things, this means that Jerusalem residents can buy apartments anywhere in the city," he said. "We cannot accept the idea that Jews should not have the right to live and buy anywhere in Jerusalem."