Israeli Prime Minister Benjamin Netanyahu reiterated that Jerusalem remained the Jewish people's indivisible capital, showing no hint of compromise over settlements ahead of White House talks.

The Israeli leader made no reference to a US-Israeli spat over settlement building in Jerusalem in a speech to a pro-Israel lobby group here, but his remarks made it clear that he would continue to support new construction in the contested city.
 

"The Jewish people were building Jerusalem 3,000 years ago and the Jewish people are building Jerusalem today. Jerusalem is not a settlement. It is our capital," he said.
 

His remarks triggered a rousing standing ovation from the 7,500 delegates to the annual policy conference of the American Israeli Public Affairs Committee (AIPAC).
 

A few lone protestors were quickly drowned out by the applause.
 

The Israeli leader's comments came ahead of a meeting Tuesday evening with US President Barack Obama - the first between the two men since Israel earned harsh US condemnation for unveiling new Jerusalem construction as US Vice President Joe Biden visited the region to support peace talks.
 

The announcement prompted a crisis in US-Israeli relations, and speeches by Netanyahu and Clinton at the AIPAC meeting were being closely watched for clues as to whether the dispute had been resolved.
 

The chief US diplomat told AIPAC that Washington had to condemn the new homes in east Jerusalem as well as settlements in the West Bank in order to preserve trust and ensure Israeli-Palestinian talks go ahead as agreed.

She said new construction "undermines" Washington's role as a credible mediator that is ready to both praise and condemn actions on both sides.
 

The secretary also urged Netanyahu to ease the humanitarian crisis in the Hamas-ruled Gaza Strip, which is under an Israeli blockade.
 

But Clinton also told delegates worried about the open rift between the allies that US support for Israel's security is "rock solid, unwavering, enduring and forever."
 

In a private meeting Monday, Netanyahu and Clinton discussed possible actions to "improve the atmosphere" for stalled US-mediated talks, Clinton’s spokesman Philip Crowley said.
 

In a statement, he said the pair met for more than an hour, joined at one point by Israeli Defense Minister Ehud Barak.

Negotiations sought
"Our focus remains creating an atmosphere of trust so that the parties can begin to address core issues through proximity talks and move to direct negotiations as soon as possible," Crowley said.
 

"We continue to make progress towards that end," he added.
 

The core issues are security for Israel, the status of Jerusalem, the fate of Palestinian refugees, and the boundaries of a future Palestinian state.
 

Netanyahu told the pro-Israel lobby - which drew around half of both houses of Congress to its gala dinner - that he is confident that Israel will have the "enduring friendship" of the United States.
 

He failed to specifically mention the rift in relations and even cited remarks made by Biden to illustrate the bilateral relationship's strength, even though the vice president condemned Netanyahu's government for announcing the new settlements while he was in Jerusalem to support peace talks.
 

On Iran, Clinton and Netanyahu expressed similar concerns, although Israel sees the matter as more urgent than the United States.

Sanctions against Iran
Clinton said Obama's administration will take the time to develop biting sanctions against Israel's arch foe Iran but will not "compromise its commitment" to prevent Tehran from acquiring a nuclear bomb.

US bids to push through a fourth set of sanctions have run into opposition from China, a veto-wielding permanent member of the UN Security Council with growing trade ties with Iran.
 

AIPAC panelists warn the row over settler homes might distract from efforts to curb Iran's uranium enrichment program, which the United States and Israel fear masks a bid to build an atomic bomb.
 

Iran insists its nuclear program is for peaceful nuclear energy.
 

Israel has threatened pre-emptive military strikes against Iran.
 

Netanyahu said Israel expects "the international community to act swiftly and to act decisively to thwart this [nuclear] danger, but we will always reserve the right of self-defence."

Source: AFP