News Brief08:54 AM

(IsraelNN.com) A Shas party official said Wednesday morning that the government has agreed to allow a previously frozen plan to build 600 new housing units in the Hareidi religious city of Betar Illit, located east of Gush Etzion and south of Jerusalem. Housing Minister Zev Boim (Kadima) has not confirmed or denied the report, based on a statement by Shas spokesman Ro'i Lachmanovitch and reported by The Associated Press.

He said that the Housing Minister promised Shas leaders he would allow the new construction, and Voice of Israel government radio said an announcement will be delayed until after American President George W. Bush leaves Israel on Friday. The American government has demanded that Israel halt all new building in Greater Jerusalem and Judea and Samaria until a final agreement is reached with the Palestinian Authority for a new state within Israel's current borders.

Shas has demanded several concessions from the government as a price of its remaining in the coalition, which would lose its majority if Shas were to quit.