Plan for new Jerusalem housing project delayed

A plan to build new housing units in Gilo, a neighborhood in southeastern Jerusalem, has been put on hold indefinitely, ITAR-TASS reported citing Why.Net.

Two local committees engaged in development projects in the Jerusalem area have decided to delay discussions on the plan to construct 1,300 units in Gilo, local daily Ha'aretz reported Monday.

The decision is most likely made in response to a request from the Prime Minister's Office, which seeks to avoid a head-on clash with the United States over the approval of new residential projects in disputed areas of Jerusalem, the report said.

Gilo, the former site of a Jordanian military outpost, was settled by Israel in the aftermath of the 1967 war and is currently home to about 50,000 residents.

The announcement of the planned construction in other parts of Jerusalem during Prime Minister Benjamin Netanyahu's visit to the U.S. last week led to tensions with the White House. U.S. President Barack Obama, then on a visit to Indonesia, personally voiced his concern over the plans, saying that "this kind of activity is not helpful to the efforts to resume peace negotiations."

Netanyahu's bureau responded hastily to the criticism by issuing a statement that said "Jerusalem is not a settlement. It is the capital of Israel."

Netanyahu is expected to pass the proposal by a margin of one when he brings it before his security cabinet, The Jerusalem Post reported Monday.