The construction of illegal Israeli settlements is a major sticking point to restarting peace talks [AFP]

Netanyahu held talks with George Mitchell on Tuesday, for a meeting that was expected to focus on reaching an agreement on freezing the construction of illegal Israeli settlements in the occupied West Bank.

But in advance of the talks, Netanyahu reaffirmed his position that Israel will not bow to US demands to completely halt the building of settlements.

In remarks to a parliamentary committee on Monday, Netanyahu rejected calls to freeze all settlement construction, but said he would consider a temporary slow-down in the rate of building.

'Reducing scope'

"They (Americans) asked us for a complete freeze and we told them that we will not do this," Netanyahu was quoted as saying by a parliamentary official.

"I told the Americans we would consider reducing the scope of construction.

"But there has to be a balance between the desire to make progress in political negotiations and the need to allow inhabitants of Judea and Samaria to continue to lead normal lives."

Netanyahu was referring to areas of the occupied West Bank.

A freeze on settlement building is one of the key Palestinian conditions for the resumption of peace talks.

Mahmoud Abbas, the Palestinian president, has said that peace talks will not restart negotiations, on hold since December, until Israel freezes its settlement activity.

Abbas was also due to meet Mitchell on Tuesday.

UN stance

Meanwhile, Ban Ki-moon, the UN secretary-general, also called on Israel to stop its settlement activity to allow the resumption of negotiations with the Palestinians.

Ban said that the UN position on settlements is clear and powerful.

Settlement construction, including natural growth, must freeze, and that should be the basis of the start of talks with the Palestinians, he said.

Ban also said he is awaiting Israeli approval to reimburse the UN for demolishing its offices in the Gaza Strip during its war there.

He said his legal advisor submitted a written application to the Israeli government after assessing the losses of the UN offices in Gaza.

Ban said he had spoken to the several top Israeli officials about the issue, and said he believes they are seriously considering the UN application.

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