THE Middle East peace process was in tatters last night and Israel's coalition government faced crisis after it announced a huge new housing development in the Arab area of East Jerusalem.
The Israeli newspaper Yedioth Ahronoth reported Mr Biden had said privately Israel's decision to build in East Jerusalem was liable "to set the Middle East on fire".
It said Israeli Prime Minister Benjamin Netanyahu sent three officials to tell the US delegation he did not know the announcement was coming, but "US administration officials didn't buy the explanation" and "officials in both the White House and the State Department accused Israel of having set Biden up".
Haaretz quoted Israeli officials as saying 50,000 new housing units beyond Jerusalem's "Green Line"(the division between Jewish and Arab areas of the city) were ready for planning and approval.
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