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Israelis break ground for housing in disputed area

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JERUSALEM -- Israel broke ground on a new housing complex for Jews in East Jerusalem yesterday, brushing off President Obama's criticism that construction in the disputed part of the holy city undermines efforts to restart Mideast peace talks.

Speaking to Fox News in Beijing yesterday, Obama criticized the plan to build hundreds of homes in Jerusalem's Gilo neighborhood, saying that such moves make it harder to achieve peace in the region and embitter the Palestinians in a way that he said could be dangerous.

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