Clinton: Israel to agree to temporary settlement freeze

Ha'aretz
Israel will agree to temporarily freeze construction in settlements in the framework of new understandings that Jerusalem will reach with Washington, U.S. Secretary of State Hillary Clinton told European foreign ministers last week.

Commenting on Clinton's statements, Israeli and American sources confirmed that the parties were close to reaching an agreement. But they said the deal was not expected to be mentioned publicly in the visit by U.S. President Barack Obama's envoy to the Middle East, George Mitchell....

Clinton reportedly told the Europeans that if the understanding is reached, it would be the first time an Israeli government agrees to halt construction in settlements. She also said, according to sources familiar with the situation, that she expected the European Union to show support and appreciation for the move by Israel.

Senior Israeli officials said Defense Minister Ehud Barak had supplied the Americans with a detailed list of all projects in the West Bank currently under construction and which Israel believes cannot be halted. The list contains 2,500 housing units, the number of units in each project, and the projects' location and construction stage.

The Americans are willing to allow most of the projects currently under construction to continue. A source close to Barak said that "if a moratorium is decided on, it will be in the framework of a more inclusive and wider deal."

But last Sunday, the cabinet decided that more than a third of the budget of the World Zionist Organization's Settlement Division for 2009 will go to assist agriculture in Jewish communities over the Green Line [Jewish-only colonies on confiscated Palestinian land]. NIS 20 million was included in the overall budget report presented to the cabinet...... Full story
Background on Israeli settlements