Jerusalem building plan not new: Netanyahu spokesman

JERUSALEM (Reuters) - Israel will continue building in all of its Jerusalem municipality and a construction plan that raised questions during Prime Minister Benjamin Netanyahu's current trip to Washington is nothing new, Netanyahu's spokesman said in a statement on Wednesday.

"There is no limitation on the right of property in Jerusalem. Jews and Arabs can buy and sell freely private property and homes in all the city, and that is the reality," Netanyahu's office said in an electronic statement.

The statement was issued shortly after U.S. President Barack Obama's administration, at odds with Israel over Jewish settlement building, said U.S. officials were seeking clarification of Israel's plan for a further expansion of Jewish housing in East Jerusalem.

"Regarding this specific case, the decision for building permits was made several months ago in 2009," the Israeli statement said. "The report that a new decision was made on this at the time of the prime minister's visit to Washington is not true."

Jerusalem councilor Elisha Peleg earlier told Israeli Army Radio the plan to build apartments in the Sheikh Jarrah district had been advancing for months and the latest move was just 'a technical step.'

Netanyahu and Obama held a 90 minute meeting in Washington earlier in the day.

(Writing by Ari Rabinovitch; editing by Tim Pearce)