U.S. Criticism on Settlements Rejected

Israel rejected President Clinton’s criticism of its plans to encourage Jewish settlements in occupied Arab lands, and it vowed to strengthen its hold on the outposts that Clinton on Monday called an obstacle to peace. Prime Minister Benjamin Netanyahu declined to comment on Clinton’s remarks, but his communications chief, David Bar-Illan, shrugged off the U.S. presidential jab, saying Washington, not Israel, had to change its policy. In Washington, meanwhile, the Clinton administration shifted gears and said an agreement on withdrawal of Israeli troops from the West Bank city of Hebron is not within reach. It criticized both Israel and the Palestinians for the failure. For weeks, the administration had claimed progress in the U.S.-assisted negotiations, saying an agreement was imminent.