By Barak Ravid and Natasha Mozgovaya Haaretz Last update - 09:06 22/03/2009
www.haaretz.com/hasen/spages/1072813.html

The dispute between the United States and Israel over the razing of
Palestinian homes in East Jerusalem is intensifying and will likely become
the first clash between the Obama administration and the government of
Benjamin Netanyahu.

The U.S. argues that the destruction of homes constitutes a violation of
commitments made as part of the road map. Israel says this is a domestic
issue of law enforcement and that the future status of Jerusalem is only to
be discussed in the final status negotiations.

"Apart from a dispute this issue will lead to nothing," a senior government
official told Haaretz.

U.S. attention to the demolitions began after the visit to the region by
U.S. Secretary of State Hillary Clinton, catching Israel by surprise.
Clinton was highly critical of Israel regarding the matter during her visit.
She said that the demolitions of Palestinian homes in East Jerusalem did not
contribute to the peace process. Clinton was under considerable pressure
from the Palestinian Authority to condemn the razings. The PA says the
demolitions are politically motivated and insists that the issue is a
bilateral one between Israel and the Palestinians.

Following Clinton's criticism the State Department asked Israel for detailed
clarifications on the issue. Even before Israel had a chance to respond,
Jerusalem Mayor Nir Barkat added fuel to the fire by suggesting that
Clinton's criticism was baseless.

The Americans reiterated during talks with Israeli officials that the
demolitions are a contravention of the road map for peace. An April 2003
document approved by the cabinet states that no punitive action will be
taken against Palestinians such as home demolitions.

Senior Foreign Ministry officials who discussed the matter with their U.S.
counterparts argued that the East Jerusalem demolitions were not punitive,
but rather part of enforcing municipal building codes.

In response to a State Department request Jerusalem prepared a detailed
letter on the legal background to the issuing of demolition orders. The
Foreign ministry argued that the matter is not a political one, but rather a
legal one, and that all demolition orders were approved following a hearing
of appeals at the Supreme Court.

The Foreign Ministry also insisted that the matter is internal and suggested
that no U.S. involvement is necessary.

A senior political source in Jerusalem said the matter represents a serious
disagreement between Israel and the U.S. that will be raised at the start of
the dialogue between Washington and the Netanyahu government.

The Israeli embassy in Washington called the issue "sensitive" and said
Israel is keen on "restoring the matter to its true proportions so that [the
U.S. does] not seek clarification every time a home is demolished in East
Jerusalem."

An Israeli diplomat added that "We intend to go to great lengths to reassure
the American administration."