US Special Envoy to the Middle East George Mitchell welcomed with hesitation the Israeli decision to offer a 10-month settlement construction freeze in the West Bank excluding East Jerusalem, but reiterated US objections to Israeli policies including house demolitions.

Mitchell's statements came moments after Israeli Prime Minister Benjamin Netanyahu announced that his Security Cabinet approved a 10-month freeze on settlement activity in the West Bank not including East Jerusalem. The US official "welcomed" the move, saying "It falls short of a full settlement freeze, but it is more than any Israeli government has done before, and can help move toward an agreement between the parties."

According to Israel's Haaretz newspaper, Netanyahu addressed the Security Cabinet before the vote, telling them that supporting the 10-month partial freeze would prove that Israel genuinely seeks to reach peace with the Palestinians.

In his speech to reporters following the decision, however, Netanyahu affirmed Jerusalem as the "undivided" capital of Israel. He also said synagogues, schools and public facilities necessary to maintain “normal life” will continue to be constructed during the freeze.

While Mitchell said he hoped the Israeli move would bring Palestinians back to the negotiating table, he maintained that the US position on East Jerusalem had not changed.

In his speech, Mitchell also condemned Israel's demolition of Palestinian homes in East Jerusalem and the eviction of families from allegedly disputed property. He reiterated that the status of East Jerusalem is a matter for final status negotiations.

"The United States also disagrees with some Israeli actions in Jerusalem affecting Palestinians in areas such as housing, including the continuing pattern of evictions and demolitions of Palestinian homes," he said. "The United States has not accepted and disagrees with any unilateral action by either party which could have the effect of preempting negotiations."

Palestinian response

Secretary of the PLO Executive Committee Yasser Abed Rabbo is set to respond to the news at an 11:30 am appearance in Ramallah on Thursday morning, officials announced shortly before Netanyahu broke the news.

Even before the decision of the Israeli cabinet members was revealed, Abed Rabbo said he would speak at length on the issue of Jerusalem, and its exclusion from the proposed 10-month freeze.

Palestinian leaders and particularly President Mahmoud Abbas have maintained a policy of no peace talks until Israel halts settlement construction in all Palestinian lands. This includes the West Bank and East Jerusalem, where Israel okayed the construction of 900 settlement units early in November.

Analysts say it is not likely the gesture will win over Palestinian negotiators.

Israel expected US support

Media reports in Israel before the announcement said the United States was expected to use the Israeli move to urge Palestinians back to the peace talk table.

The move was reportedly expected despite US President Barack Obama's expression of dismay over the announcement of Israeli plans to continue settlement expansion in East Jerusalem. The US position is that all settlement construction on occupied Palestinian areas is illegal.

"This step will advance Israel's broad international interests. This is not a simple step, nor an easy one; but it has many more advantages than disadvantages," the paper quoted the Netanyahu as telling his aides.

All but one of the cabinet members voted in favor of the move. National Infrastructure Minister Uzi Landau, with the Yisrael Beiteinu party, was opposed.

Clinton welcomes move

US Secretary of State Hillary Clinton also addressed the Israeli move shortly after Netanyahu’s announcement. She also welcomed the decision to offer a partial 10-month settlement construction freeze excluding East Jerusalem, schools, synagogues and public facilities.

"We believe that through good-faith negotiations the parties can mutually agree on an outcome which ends the conflict and reconciles the Palestinian goal of an independent and viable state based on the 1967 lines, with agreed swaps, and the Israeli goal of a Jewish state with secure and recognized borders that reflect subsequent developments and meet Israeli security requirements," she was quoted by AP as saying.