Officials in the Prime Minister’s Office said Monday that Prime Minister Ehud Olmert had not decided to freeze construction in Jewish neighborhoods of Jerusalem.  Rumors of a construction freeze in parts of Jerusalem east of the 1948 armistice line were “ridiculous,” they said.

Olmert made it clear to international leaders, including United States President George Bush, that Israel sees Jewish neighborhoods of Jerusalem as undisputedly Israeli, the officials said.  Palestinian Authority Chairman Mahmoud Abbas has insisted that Israel give the PA all territories east of the 1948 armistice line, including parts of Jerusalem.