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"Aides to Israel's prime minister said Thursday that his government has officially rejected President Barack Obama's demand that it suspends all construction in contested east Jerusalem, a move that threatens to entrench a year-old deadlock in Israeli-Palestinian peacemaking.
The aides said Israeli Prime Minister Benjamin Netanyahu delivered his government's position to Obama over the weekend, ahead of the scheduled arrival later Thursday of Obama's Mideast envoy, George Mitchell.
Washington had put Mitchell's shuttle diplomacy on hold as it awaited a reply from Israel, and aides to Netanyahu provided no information on whether the Israeli leader had offered any other concessions to the Palestinians in an effort to restart the long-stalled talks.
The aides spoke on condition of anonymity because the contact between the two leaders was private."
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http://www.miamiherald.com/2010/04/22/1591967/israel-to-us-no-building-halt.html#ixzz0logBaCdC