Plans to build new settler homes in east Jerusalem are Israel's answer to US Secretary of State John Kerry's efforts to renew peace talks, a senior Palestinian official charged on Wednesday.

"Israel is sending message after message to Kerry that settlement is their response to any (peace) initiative," Hanan Ashrawi told AFP after a committee pushed through plans for 69 new homes in Har Homa, a particularly contentious area on the southern outskirts of Arab east Jerusalem.

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