US, March 9, 2010 (Pal Telegraph)- The United States considers Israel's decision to build 112 housing units in the occupied West Bank consistent with Israel's settlement freeze, says a spokesman, although it is the kind of act both sides should be cautious about as they embark on indirect peace talks.

Environment Minister Gilad Erdan said earlier that the Netanyahu government had given the green light to build 112 housing units in the Beitar Elite settlement, near Bethlehem in the West Bank.

P. J. Crowley, US State Department spokesman told reporters on Monday: "On the one hand, it does not violate the moratorium that the Israelis previously announced. On the other hand, this is the kind of thing that both sides have to be cautious as we move ahead with these parallel talks. When you are in talks of this kind, you have to recognize the interests and perceptions of the other side, and both sides should be cautious about actions that might be either misperceived within the region or that might be exploited by those who want to create obstacles."

Under heavy U.S. pressure, Israel agreed in November to restrict building in the West Bank to about 3,000 apartments whose construction was already underway. But it rejected any curbs in East Jerusalem, which the Palestinians want for their future capital.

The government said at the time that exceptions to the slowdown could be allowed, and on Monday, the Ministry of Defense said an exception was made in the case of the ultra-Orthodox Beitar Illit because of what it termed safety issues.On Sunday, Palestinian leaders agreed to hold U.S.-brokered peace talks with Israel for four months, ending a 14-month breakdown. In so doing, they backed off from a demand that Israel freeze all building in the West Bank and east Jerusalem before they would return to the negotiating table.

On Monday, Palestinian negotiator Saeb Erekat accused Israel of trying to undermine the talks even before they began.

"If the Israeli government wants to sabotage [Mideast envoy George] Mitchell's efforts by taking such steps, let's talk to Mitchell about maybe not doing this [indirect talks] if the price is so high," Erekat said.

Israeli anti-settlement watchdog Peace Now also questioned Israel's motives.

"The Israeli government is welcoming the [U.S.] vice president by demonstrating, to our regret, that it has no genuine intention to advance the peace process," said the group's settlement expert, Hagit Ofran.