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Former US President Jimmy Carter holds a Palestinian baby girl during a visit of the Elders Delegation to the occupied East Jerusalem neighbourhood of Silwan on Thursday. Image Credit: Reuters

Occupied Jerusalem: The UN's Middle East envoy on Thursday criticised Israel's renewed building in West Bank colonies in response to an Associated Press investigation.

The AP report showed that Israel has begun building at least 544 apartments since a 10-month halt on new housing starts in the colonies expired late last month. Palestinians charge that construction in the colonies is aimed at preventing the establishment of a Palestinian state, and the issue has brought recently renewed US-brokered peace talks to a standstill.

Also on Thursday, world Jewish leaders broke with the past and demanded an active role in deciding Israel-Palestinian peace issues, singling out the fate of occupied Jerusalem.

In a statement, UN envoy Robert Serry called the AP colony report "alarming." He said colony construction is "illegal under international law" and "will only further undermine trust."

Intense pressure

Despite intense US pressure, Israel has so far refused to renew the construction curbs, saying the colony issue should be addressed in negotiations.

Israel also drew criticism on Thursday from former President Jimmy Carter, who is visiting Israel, Gaza and the West Bank.

After touring east Jerusalem flashpoints where Jewish colonists have moved in to houses after Palestinians were evicted, Carter expressed outrage.

"The suffering here under occupation and the deprivations of people in Gaza are evidence of the improper policies of the government of Israel," he said.

"We will continue to work on a peaceful solution where the Israelis will withdraw from east Jerusalem, and let this be the capital of a Palestinian state."

Later, as Carter was being driven through occupied east Jerusalem, a car driven by a Palestinian entered the motorcade, Israeli police said. The convoy halted, and armed guards took the Palestinian driver for questioning.

Palestinians demand control over east Jerusalem, with its key holy sites in the Old City, as part of any peace accord.

While world Jewish groups reflect the full range of political outlooks, many oppose concessions over occupied Jerusalem's holy sites as a matter of principle, regardless of the political or military price Israel might have to pay for standing firm.