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Settlement Plan to Proceed, Cabinet Says

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From Times Wire Reports

Israel’s Cabinet said it was proceeding with plans to expand Jewish settlements despite U.S. criticism and reports that Washington may retaliate by withholding $2.7 billion in loan guarantees. Israeli-U.S. relations have grown increasingly tense over the settlement issue. But David Bar-Illan, a spokesman for Prime Minister Benjamin Netanyahu, said Israel will not curb settlement construction. In Washington, Secretary of State Warren Christopher said American mediator Dennis Ross was going to the region to meet with Arab and Israeli leaders.

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