Clinton criticises Israel over E.Jerusalem demolition

By Sue Pleming and Mohammed Assadi

RAMALLAH, West Bank (Reuters) - U.S. Secretary of State Hillary Clinton criticised Israel on Wednesday over plans to demolish Palestinian homes in Arab East Jerusalem and said Washington would engage Israeli leaders on Jewish settlements.

Calling the planned destruction of more than 80 dwellings "unhelpful," Clinton said after talks with Palestinian leaders: "It is an issue that we intend to raise with the government of Israel and the government at the municipal level in Jerusalem."

Israel says the homes slated for demolition were built without permits.

Palestinians say authorisation from Israel's Jerusalem municipality is nearly impossible to obtain. They accuse Israel of trying to drive them out of East Jerusalem, captured in the 1967 war, to make room for Jewish families.

Israel considers all of Jerusalem its "united and eternal" capital, a claim that does not have international recognition. The Palestinian Authority wants East Jerusalem to be the capital of a Palestinian state.

At a news conference with Palestinian President Mahmoud Abbas in the occupied West Bank, Clinton stopped short of repeating U.S. calls for an immediate cessation of Israeli settlement expansion but promised to follow up on the issue.

"We will be looking for a way to put it on the table along with all the other issues that need to be discussed and resolved," she said.

"I think at this time, we should wait until we have a new Israeli government. That will be soon and then we will look at whatever tools are available," Clinton said.