Palestinians: Israeli policy on Jerusalem remains unchanged, the prime minister's office said on Friday, one day after the premier returned from Washington where he faced pressure to freeze settlements.
"The prime minister's position is that there is no change in Israel's policy on Jerusalem that has been pursued by all governments of Israel for the last 42 years," Prime Minister Benjamin Netayahu's office said in a statement.
Israel insists a partial moratorium on settlement building it imposed in the occupied West Bank cannot be extended to east Jerusalem as it considers the entire city its "eternal and indivisible" capital.
Meanwhile, a spokesman for Netanyahu said on Friday the United States had not agreed to further Israeli construction in East Jerusalem, clarifying a comment made by another aide.
Spokesman Mark Regev said that when Nir Hefez said understandings had been reached, he was "articulating the Israeli position, he is not articulating a joint position."
Netanyahu's spokesman Nir Hefez told Army radio the day after their return from a troubled U.S. visit that Netanyahu had reached a "list of understandings" on policy toward Palestinians with President Barack Obama in their talks in Washington.
But "there were additional points still in disagreement between the sides," Hefez added.
The Americans have reportedly given Netanyahu a series of demands needed to kickstart moribund peace talks with the Palestinians.
Netanyahu will meet his inner forum of seven senior ministers to draw up Israel's response to Washington, Cabinet Secretary Zvi Hauser told public radio on Friday, denying media reports the United States had given Israel a deadline.
"I suggest you wait patiently. The forum of seven is meeting today in the afternoon to discuss things. If there is a necessity for further discussions they will happen," Hauser told the radio.
"All aspects of the issue will be examined and they will formulate Israel's position according to Israel's interests and in the time needed to do so," he said.
Palestinians have demanded a complete Israeli settlement freeze in occupied land including East Jerusalem and the West Bank. Israel sees all of Jerusalem as its capital, a claim that is not recognized internationally.
The Obama administration had also objected to Israel's latest settlement plans for East Jerusalem, including a blueprint for 1,600 housing units published while Vice President Joe Biden was visiting, igniting new controversy this month.
Hefez said that despite these differences, Obama and Netanyahu had agreed in 90 minutes of talks in Washington on Wednesday that Israeli "construction policy in Jerusalem doesn't change."
Netanyahu left Washington after a three-day visit on Thursday, "with a list of understandings and additional points that are still in disagreement between the sides regarding how to renew the talks with the Palestinians," Hefez said.
Hefez's comments seemed to conflict with indications from U.S. officials they had sought to coax Israel into suspending further East Jerusalem projects and discussing core issues such as borders and the status of Jerusalem in indirect talks Washington seeks with Israel and the Palestinians.
Obama's spokesman Robert Gibbs said he had asked Netanyahu to take steps to build confidence for proximity talks so that progress can be made toward comprehensive peace.
"I think we're making progress on important issues. But nothing more on substance to report than that," Gibbs said on Thursday.
Gibbs also said U.S. officials wanted clarification about any further building in Jerusalem, after a city official on Wednesday said final approval had been given to develop a neighborhood from which Palestinians were evicted last year.
Palestinians said they had no indication of any agreement reached in Obama's talks with Netanyahu about renewing negotiations.
"There is absolutely nothing new, as of this moment, regarding the situation facing the peace process," Nabil Abu Rdainah, an aide to Palestinian President Mahmoud Abbas, told Reuters on Thursday.
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