Israel's Jerusalem council OKs settlement expansion

JERUSALEM (Reuters) - Israel's Jerusalem municipality announced plans on Monday to build 600 new housing units in a Jewish settlement, in an area of the occupied West Bank the Israeli government considers part of the holy city.

The decision to build within the settlement of Pisgat Zeev coincided with a visit by U.S. Secretary of State Condoleezza Rice, who is trying to bolster peace talks in which Israeli settlement activities have caused friction.

(Writing by Jeffrey Heller, Editing by Adam Entous)