Israel sanctions construction of 400 new homes in east Jerusalem

Occupied Jerusalem: In a move that may hamper peace efforts, Israel has sanctioned a plan to build 400 new homes in eastern Jerusalem, a municipality spokesman said on Monday.

An official said final approval from a regional planning committee is the last step before construction can begin in the neighbourhood of Neve Yaakov.

The spokesman did not know when construction will commence.

This announcement comes one day after Israeli Prime Minister Ehud Olmert ordered renewed construction of 750 homes in the West Bank.

A partial freeze on settlement construction in the West Bank ordered by Olmert does not apply to east Jerusalem, a spokesman for the prime minister said.