Israel's announcement Tuesday that it plans on building 300 new homes in the Jerusalem neighborhood of Har Homa prompted a slew of attacks by international diplomats. UN Secretary-General Ban Ki Moon criticized Israel's decision as "not helpful," and a PLO representative has called upon the United States to intervene.

US Secretary of State Condoleeza Rice stated that the move to increase housing in the Jewish capital "doesn't help to build confidence." Israeli Foreign Minister Tzipi Livni responded by saying, "Israel wants to end this conflict with the Palestinians, and understands it would have to make concessions for a Palestinian state to be established. We evacuated settlements from Gaza and we plan to do so in the West Bank as well." Livni made the statement to reporters after meeting with Rice.

The United States hopes to conclude issues pertaining to a division of Israel into a PLO state by the time President George W. Bush leaves office in 13 months.