Javier Solana, foreign policy chief of the EU, said Israel had contravened the Road Map plan of the United States by proposing new building in Ma'aleh Adumim, a city of more than 30,000 people east of Jerusalem. Israeli officials have pointed out that all of the building is within the city's municipal limits.

Solana said failure of Israel to freeze all building in communities beyond the 1967 border endangers negotiations with the Palestinian Authority (PA), which denounced Israel in sharp terms.

Ahmed Qureia, the PA prime minister, warned that the "United States knows the detail and dangers of such plans." The PA's chief negotiator, Saeb Erekat, said the proposed building "puts our effort to revive the peace process in danger." Both leaders charged that the building construction would weaken their demands that Jerusalem be the capital of a proposed Palestinian state.

The PA and terrorist organizations last week agreed to continue the present "cooling off" period, on condition that Israel withdraw military forces from all major Arab cities in Judea and Samaria. Israel already has said that the IDF’s withdrawal from Kalkilya, near Kfar Saba, will be delayed because the PA has not yet proven responsible in arresting known terrorists following withdrawals from Jericho and Tulkarm in the past two weeks.

Arab sources have suggested that the delay in withdrawal from Kalkilya, combined with the expansion plan for Ma'aleh Adumim, may be catalysts for a resurgence of terrorism.

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