Israel, Palestinians resume suspended peace talks

By Adam Entous

JERUSALEM (Reuters) - Israeli and Palestinian negotiators held undisclosed peace talks after a deadly Israeli offensive in the Gaza Strip led to their brief suspension and will meet again on Monday, Israeli officials said.

Despite growing tensions over settlement expansion on occupied land, Israeli Prime Ehud Olmert said the construction would continue in Jerusalem and in settlement blocs the Jewish state wants to keep as part of any deal with the Palestinians.

"There will be places where there will be construction, or additions to construction, because these places will remain in Israel's hands in any future constellation -- and this includes, first and foremost, Jerusalem, and everyone knows this," Olmert told a news conference with German Chancellor Angela Merkel.

The comments come despite pressure from U.S. Secretary of State Condoleezza Rice for both Israel and the Palestinians to do more to meet their commitments under the long-stalled "road map" peace plan.

Washington has been especially critical of Israeli plans to build hundreds of new homes in Jewish settlements in and around Jerusalem, in areas occupied in the 1967 Middle East war.

The peace talks, led by Israeli Foreign Minister Tzipi Livni and former Palestinian prime minister Ahmed Qurie, have shown little sign of progress since they were launched at a peace conference in Annapolis, Maryland in November.

"There will be a meeting today between the foreign minister ... who heads the negotiating team in order to continue the negotiations with the Palestinian side led by Abu Ala (Qurie)," Olmert said. "We have not stopped, we are not stopping and we will not give up."

An Israeli official, speaking on condition of anonymity, said Livni and Qurie met secretly about 10 days ago but that session was not publicly disclosed.