New construction in East Jerusalem or the West Bank undermines that mutual trust and endangers the proximity talks that are the first step toward the full negotiations that both sides say they want and need. And it exposes daylight between Israel and the United States that others in the region hope to exploit. It undermines America's unique ability to play a role, an essential role, in the peace process.
-- Secretary of State Hillary Clinton, Democracy Now, 23 March 2010
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