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Occupied Jerusalem: Israel will build up to 750 new homes in the occupied West Bank, close to Jerusalem, according to officials.
The announcement comes three days after a Palestinian gunman shot dead eight students at a seminary in Occupied Jerusalem.
An official said the decision was taken after meeting Prime Minister Ehud Olmert, who has barred ministries from ordering new construction in settlements.
Israel Radio reported that the ultra-Orthodox Shas party threatened to pullout of the governing coalition unless construction was approved.
The announcement will likely further complicated already stalled peace-talks.
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