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...Benjamin Netanyahu is clearly feeling lucky. As his skirmish with the Obama Administration over Israel's settlement activity in East Jerusalem entered its second week on Tuesday, the Israeli Prime Minister was pushing back against Washington's demands. U.S. Secretary of State Hillary Clinton has put the onus on Israel to "demonstrate its commitment" to the peace process by reversing a plan to build new housing units in East Jerusalem (occupied by Israel since 1967); declaring its readiness to hold substantial negotiations with the Palestinians on all final-status issues (including Jerusalem, whose control by Israel Netanyahu has repeatedly insisted...

Author: /time Magazine | Title: Pressure Grows on U.S. to Tamp Down Its Spat with Israel | 3/17/2010 | See Source »

...Secretary of State Hillary Clinton, after publicly announcing the substance of a 42-min. dressing down of Netanyahu by phone, reportedly sent the Prime Minister a list of steps Washington expected him to take in order to repair relations. Those steps are said to include investigating the Jerusalem settlement announcement; reversing the construction approval; making substantial gestures toward the Palestinians such as releasing a large number of Palestinian prisoners, withdrawing troops from additional areas in the West Bank or easing the siege of Gaza; and publicly declaring Israel's intent to negotiate with the Palestinians on all of the conflict...

Author: /time Magazine | Title: The U.S.-Israel Spat Over Settlements: Risks for Both Sides | 3/16/2010 | See Source »

...Taking such steps, of course, would threaten Netanyahu's coalition with the right-wing parties that are committed to expanding settlements. For now, at least, Netanyahu is talking tough: "The building in Jerusalem - and in all other places - will continue in the same way as has been customary over the last 42 years," he told a meeting of fellow Likud Party members on Monday. (See pictures of Jerusalem, a divided city...

Author: /time Magazine | Title: The U.S.-Israel Spat Over Settlements: Risks for Both Sides | 3/16/2010 | See Source »

...Israel expect the game of chicken to last very long. Israel can ill afford a public breach with its main ally, financial backer and arms supplier at a time when the Israeli leadership's prime objective is to focus U.S. attention on Iran. Nor would Netanyahu's government necessarily collapse if he gave some ground in response to U.S. pressure. His right-wing coalition partners know that they'll have a better chance of sabotaging the peace process while inside the government than if they were the opposition, forcing Netanyahu to turn instead to the centrist Kadima Party...

Author: /time Magazine | Title: The U.S.-Israel Spat Over Settlements: Risks for Both Sides | 3/16/2010 | See Source »

...with the Biden visit having highlighted differences over Jerusalem, the issue can't be easily fudged. Even if Netanyahu quietly undertakes to refrain from new construction in East Jerusalem, the move would not go unnoticed for long - and would prompt right-wing demonstrations and agitation. The right-wing settler movement is well entrenched in the government bureaucracy responsible for settlement construction, and precedent suggests they would find a way to continue building regardless even of any secret promises to the U.S. by Netanyahu. "Everything in East Jerusalem is under a magnifying glass and involves too many people and politics...

Author: /time Magazine | Title: The U.S.-Israel Spat Over Settlements: Risks for Both Sides | 3/16/2010 | See Source »

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