Israel starts work on new East Jerusalem homes

Israeli bulldozers begin work to clear a controversial hotel complex in the mostly Arab neighbourhood of Sheikh Jarrah for the building of dozens of new homes for Jews.

The Shepherd Hotel in East Jerusalem was demolished yesterday to make way for new homes for Jewish settlers. Ammar Awad / Reuters

TEL AVIV // Israeli bulldozers began work yesterday to clear a controversial hotel complex in the mostly Arab East Jerusalem neighbourhood of Sheikh Jarrah for the building of dozens of new homes for Jews, in a move that drew condemnation from the Palestinians.

Construction workers and earth-moving equipment arrived at dawn to destroy part of the decrepit Shepherd Hotel, a formerly Arab-owned property that was bought by a Jewish-American millionaire in 1985, a purchase that has been contested by the Palestinians.

The plan to build homes for Jews on the site has raised tensions between Israel and the Palestinians, and Israel's move yesterday is likely to be the latest thorn in US bids to reignite suspended Middle East peace talks.

"The state of Israel is demolishing one Palestinian property after another in an effort to cleanse Jerusalem of its Palestinian inhabitants," said Saeb Erekat, the chief Palestinian negotiator, in a statement. "As long as this government continues with settlement and acts like the demolition of the Shepherd Hotel, there will be no negotiations."

Israel announced its intention to build Jewish homes in the complex in 2009, during a visit of US Vice President Joe Biden in the region, spurring a diplomatic rift with the country's most powerful ally. Despite a US call to halt the project, Israeli authorities gave it a final approval last March, with Israeli Prime Minister Benjamin Netanyahu insisting that the country's sovereignty over Jerusalem "cannot be challenged".

The Shepherd Hotel was constructed in the 1930s for the former Muslim grand mufti Haj Amin al-Husseini, who went into exile in 1937 and died in 1974. The Israeli government took over the property's ownership after the country captured East Jerusalem in the 1967 Arab-Israeli war and annexed the area in a move that was not recognised internationally.

Irving Moskowitz, an American businessman and a passionate backer of Jewish expansion in disputed East Jerusalem, purchased the hotel in 1985. Mr Moskowitz gained the necessary permits for construction from the Jerusalem municipality in 2009 following a years-long effort to advance the building plans.

Israel has insisted that the property is private and that it was bought in accordance with Israeli law. However, the Palestinians have questioned the legality of the acquisition. The plans call for the initial construction of 20 Jewish homes, and the later building of 50 more apartments, according to Elisha Peleg, a member of the Jerusalem City Council and a backer of the project.

The dispute over East Jerusalem appeared to be a key cause of the current stalemate between Israel and the Palestinians. Israel views East Jerusalem as part of its capital city while the Palestinians want the area as the capital of their future state. Israel in September refused to extend a partial freeze over Jewish settlement construction in occupied territory because it did not want the moratorium to include East Jerusalem - which the Palestinians had demanded as a condition to returning to face-to-face negotiations.

Mr Erekat is heading to Washington this week to discuss the peace process with White House officials. Yitzhak Molcho, a senior aide to Mr Netanyahu, will also be visiting the US for similar talks although he is not expected to meet directly with Mr Erekat.