Foreign Minister Bob Carr today expressed strong disappointment at the approval by the Jerusalem District Planning Board's of 1,500 new housing units in the East Jerusalem neighbourhood of Ramat Shlomo, as well as with reports the Board is considering approving another 5000 units in nearby settlements.

"This approval throws yet another obstacle across the path to peace," Senator Carr said.

"It comes just two weeks after Israel's previous announcement on settlement expansion.

"Continuing to approve expansion of settlements in East Jerusalem is especially provocative.

"If construction of these 1,500 units proceeds it will make a negotiated two-state solution even harder to achieve. And without such a solution, there can be no prospect of durable security for Israelis or Palestinians.

"I urge the Israeli Government to reconsider this decision and to refrain from further settlement activity."

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