The New Nation - Internet Edition

AFP, Jerusalem

The Jerusalem authorities on Monday announced plans to build 600 new homes at an Israeli settlement in the occupied West Bank which they consider to be part of the Holy City.

The municipality made the announcement as US Secretary of State Condoleezza Rice wrapped up a tour of the region aimed at bolstering the slow-moving peace process and amid Palestinian anger at continued settlement activity.

"The plan is part of a global initiative by the mayor of Jerusalem to build 40,000 housing units in the city to ease access to housing for young couples," a municipality statement said.

It said 600 homes will be built in Pisgat Zeev, a Jewish settlement in occupied and annexed Arab east Jerusalem.