Palestinians Warn Israel over New Settlement Plans

Could sabotage peace talks

Palestinian negotiators Wednesday expressed concern at reports of an Israeli plan to build a new Jewish settlement in a predominantly Arab East Jerusalem neighborhood.

Chief Palestinian negotiator Saeb Erekat warned that settlement construction "has a price and that this price will continue to grow" if Israel proceeds with its settlement plans, which he said could sabotage peace talks resumed only last week in Washington.

Talks are expected to continue next week in Jerusalem following Israeli government approval to release 26 Palestinian prisoners out of 104 it agreed to release in four stages during the talks.