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US Vice-President Joe Biden is meeting the Palestinian Authority President, Mahmoud Abbas, in Ramallah.

The Israeli government’s approval of plans for 1,600 more homes in a Jewish settlement in occupied East Jerusalem is expected to dominate the talks.

Mr Biden earlier said the substance and timing of the decision had undermined the trust needed for peace talks.

The Palestinian Authority said the move showed the Israelis believed US efforts had failed before they had even begun.

Both sides have agreed to hold indirect "proximity talks" in a bid to restart the peace process, which has been stalled for 17 months.

‘Disastrous situation’

Mr Abbas has refused to resume direct negotiations with the Israeli government because of its refusal to put a complete stop to the expansion of settlements in the West Bank and East Jerusalem.

"The only message we are getting from the Israelis is their determination to undermine the American efforts and to undermine these negotiations before they even begin"

Saeb Erekat
Chief Palestinian negotiator

In the shadow of a settlement

An Israeli settlement in close-up

Middle East ‘haunted by the past’

In November, Israel announced a 10-month suspension of new building in the West Bank, under heavy US pressure. But it considers areas within the Jerusalem municipality as its territory and the restrictions do not apply.

Close to 500,000 Jews live in more than 100 settlements built since Israel’s 1967 occupation of the West Bank and East Jerusalem. They are considered illegal under international law, although Israel disputes this.

During their dinner on Tuesday evening, Israeli Prime Minister Benjamin Netanyahu told Mr Biden that he had no prior knowledge of the decision to authorise the new housing units in the ultra-Orthodox settlement of Ramat Shlomo, officials said.

He said the plans had been submitted three years ago and had only received initial approval that day.

‘Working relationship’

But the US government has not accepted Israel’s explanation that the announcement was essentially part of a bureaucratic process that had no connection with Mr Biden’s visit, says BBC Middle East editor Jeremy Bowen in Jerusalem.

Israel, deliberately or not, inflicted something close to a humiliation on the Obama administration and the words they chose in reaction reflected that, our correspondent says.

"The substance and timing of the announcement, particularly with the launching of proximity talks, is precisely the kind of step that undermines the trust we need right now and runs counter to the constructive discussions that I’ve had here in Israel," Mr Biden said.

"We must build an atmosphere to support negotiations, not complicate them. This announcement underscores the need to get negotiations under way that can resolve all the outstanding issues of the conflict."

"Unilateral action taken by either party cannot prejudge the outcome of negotiations on permanent status issues," he added.

The chief Palestinian negotiator, Saeb Erekat, said the Israeli announcement would dominate the meeting between Mr Biden and President Abbas.

"This is a disastrous step on behalf of the Israelis – it is catastrophic," he told the BBC. "The only message we are getting from the Israelis is their determination to undermine the American efforts and to undermine these negotiations before they even begin."

"But we hope that the Americans will move another step in the direction of having the Israelis revoke this order, if they want to give the process the chance it deserves."

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Israeli government spokesman Mark Regev said it had gone further than any previous administration in limiting settlement growth in an effort to restart the peace process.

He rejected claims that it had damaged relations with the US.

"We have a very good working relationship and a very good personal relationship," he told the BBC.

He also dismissed speculation in the Israeli media that the interior ministry’s announcement was a deliberate move by some members of Mr Netanyahu’s government to scupper any chance of peace talks.

"I don’t think so. We are hopeful now that we are entering a new period of negotiations, that we hope will lead very quickly to the resumption of direct talks," he added.

Our correspondent says the Americans will have to work hard to keep the Palestinians in the peace talks they are trying to launch – that may have been one reason for the strong language Mr Biden used.

This row is another reminder of why so many people are pessimistic about peace talks – and deeply worried about the future, he adds.

The US special envoy to the Middle East, George Mitchell, is scheduled to arrive in the region next week to conduct the second round of proximity talks.</p

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

The EU’s foreign policy chief, Catherine Ashton, says Europe has a "once in a generation opportunity" to build a robust new diplomatic service.

Addressing the European Parliament, Lady Ashton pointed to EU successes in the post-conflict Western Balkans as a model for future action.

She said that in the Western Balkans "more than anywhere else" the EU "cannot afford to fail".

MEPs are discussing the structure of a new European External Action Service.

The service – known as the EEAS – is the focus of intense debate between the EU’s institutions, which want to ensure their influence is not diluted.

A BBC correspondent in Brussels says Lady Ashton has been criticised as too inexperienced for the new job of EU High Representative – and she must convince MEPs that she can provide the leadership such a complex project needs.

Our correspondent says her biggest battle remains with those in the EU’s executive arm – the European Commission – who are reluctant to surrender powers that member states want to delegate to the new foreign service. </p

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A court case brought by the family of Rachel Corrie, a US protester killed by an Israeli army bulldozer in 2003, is due to begin in Israel.

The civil action against the Israeli defence ministry will decide whether damages should be paid for her death in Gaza at the age of 23.

Ms Corrie and other activists had been trying to stop the demolition of Palestinian homes.

Her family has maintained that a full investigation was never carried out.

Ms Corrie’s writings – published posthumously – and a play about her life made her a symbol of the international campaign on behalf of Palestinians.

Driver ‘unaware’

The Israeli army says that on the day Ms Corrie died, bulldozers had been flattening ground in the Rafah refugee camp in an attempt to stop suicide bombers reaching Jewish targets.

It says she was hidden behind an earthwork and the military bulldozer driver was not aware she was there.

Ms Corrie’s family says the order to use bulldozers should never have been given while non-combatants – the peace activists – were in the area.

"We’ve been asking for essentially justice for seven years since Rachel was killed," said her father, Craig Corrie.

"Now it’s finally come to court, and of course we want to find out the information [about her death] and have some accountability."

Mr Corrie says he believes that the driver of the bulldozer received new orders just before his daughter was killed "something to the effect of not letting the internationals [peace activists] stop them".

"Five minutes later Rachel was killed. So with that order apparently something changed and Rachel didn’t know the change," he said.

Ms Corrie’s mother, Cindy, described her daughter as a compassionate person who "opened people’s eyes" to the situation in Gaza.

Diaries kept during her time in the Palestinian territories were later turned into a play – My Name is Rachel Corrie – which has toured all over the world, including the West Bank and Israel.

The court case will take place in the northern city of Haifa.</p

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Indonesian President Susilo Bambang Yudhoyono has confirmed that the terror suspect Dulmatin was killed in a police raid in Jakarta.

Indonesian security forces said they had killed three suspected militants in two raids on Tuesday.

But they could not confirm that Dulmatin, alleged mastermind behind the 2002 Bali bombings, was among those killed.

Mr Yudhoyono is on a three-day trip to neighbouring Australia.

The raids were said to be linked to an ongoing operation against militants in Aceh province that has brought a number of arrests.

Most wanted

"We can confirm that one of those that were killed was Mr Dulmatin, one of the top south-east Asian terrorists that we have been looking for," Mr Yudhoyono said through an interpreter in a luncheon speech at Australia’s parliament.

The killing of Dulmatin will be greeted with particular enthusiasm in Australia – half of the 202 casualties in the Bali bombings were Australian.

The Australian Prime Minister, Kevin Rudd, had earlier praised Indonesia’s efforts to dismantle terrorist networks.

He was speaking in Canberra at a joint news conference with Mr Yudhoyono.

Mr Rudd described the Indonesian operation as very professional and significant.

Indonesia’s anti-terrorist forces have launched a series of raids nationwide after the discovery of an alleged Islamist militant training camp in the province of Aceh last month.

The BBC’s Indonesia correspondent Karishma Vaswani says Dulmatin has been an elusive target. A few years ago, the Phillippines army said he had been injured during a gun battle, but no one could say for sure that he had been seriously hurt.

DNA tests were carried out on a body found in the southern Philippines in 2008, but it was confirmed not to be his.

DNA tests had also been necessary to prove beyond doubt that Noordin Mohamed Top, at the time Indonesia’s most-wanted Islamist militant, had been killed in September 2009.

Troubling

Security analysts say that while the killing of Dulmatin is a significant coup for Indonesian authorities, and shows they are doing their job, it is also a troubling sign that terror networks in Indonesia could be seeing a possible rejuvenation.

Our correspondent says that would be a big concern for Indonesian police who had hoped that their efforts to stamp out terrorism in the archipelago over the last few years had been successful.

The latest raids come less than two weeks before the visit to Indonesia of US President Barack Obama.

Indonesia has made significant inroads in recent years into dismantling the leadership of Jemaah Islamiah.

The police have also been recently engaged in an operation targeting Aceh militants.

A total of 14 people have been charged with plotting to launch terrorist attacks.

Those charged are believed by officials to be members of a previously unknown terror group.

But seizures in raids included DVDs on the Bali bombings.

Police have been investigating possible links between the militants and Jemaah Islamiyah, which was blamed by the authorities for the Bali attacks.</p

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Afghan President Hamid Karzai is shortly expected to meet President Mahmoud Ahmadinejad of Iran in Kabul.

It is the Iranian president’s first visit to the neighbouring country since Mr Ahmadinejad and Mr Karzai were re-elected last year.

Later, the Afghan president will head to Pakistan for a two day visit.

President Karzai has been criticised for not doing enough to bring the Taliban to the negotiating table, to end the conflict in Afghanistan.

The BBC’s Quentin Sommerville, in Kabul, says the co-operation of Iran and Pakistan is thought critical to any such deal.

Tehran has been criticised by the United States for offering "low level support" and money to the Taliban, a claim Iran denies.

But with the recent capture of leading Taliban figures, Pakistan has shown its co-operation will be essential to ending the insurgency in Afghanistan, our correspondent adds.

Later on Wednesday, Britain’s Foreign Secretary David Miliband is expected to deliver a speech in the US, urging President Karzai to do more to find a political solution to the conflict with the Taliban.

The military effort alone will not be enough to resolve the conflict, he is expected to say, and Afghanistan’s neighbours will need to play a central role in securing peace in the country. </p

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The earthquake in Chile may cost the global insurance industry as much as $7bn (£4.7bn), Swiss Re has estimated.

The company, the world’s second-largest reinsurer, said the impact on the sector would between $4bn and $7bn.

Swiss Re said its own losses from last month’s 8.8 magnitude quake would total about $500m.

Chile’s president has said it will take his country up to four years to recover, but economists say Chile is well placed to do this.

The country is regarded as having one of the best-run economies in Latin America.

Led by its substantial copper production – which was relatively unaffected by the quake – economists predict the country’s economy will still grow by 5% this year.</p

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The Pakistan Cricket Board has issued indefinite bans to former captains Mohammad Yousuf and Younus Khan.

Its inquiry into events during the tour of Australia found the pair had been involved in "infighting which resulted in bringing down the whole team".

Rana Naved-ul-Hasan and Shoaib Malik each face one-year bans and big fines.

Shahid Afridi, Kamran Akmal and Umar Akmal also face heavy fines while their conduct will be strictly monitored during a six-month probationary period.

On Wednesday, the PCB implemented the recommendations of an inquiry committee formed to evaluate Pakistan’s dismal performance against Australia during the winter.

Pakistan must now try to defend their ICC World Twenty20 crown in the Caribbean next month with severely depleted resources, before facing what could be a chastening tour of England.

But the PCB was unrepentant, saying: "This will go a long way to arrest the continuing decline of Pakistan cricket and improve the state of cricket in Pakistan."</p

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The former head of MI5 has claimed US intelligence agencies "concealed" their mistreatment of terror suspects.

Baroness Eliza Manningham-Buller said she only discovered alleged 9/11 mastermind Khalid Sheikh Mohammed was waterboarded after retiring in 2007.

In a lecture at the House of Lords, she said the US had been "very keen to conceal from us what was happening".

Her comments follow controversy over UK agents’ alleged collusion with US counterparts using torture techniques.

Last month it emerged that Binyam Mohamed, a British resident formerly held at Guantanamo Bay, had been subjected to "cruel, inhuman and degrading" treatment.

""The Americans were very keen that people like us did not discover what they were doing"

Lady Manningham-Buller

Ministers and current MI5 head Jonathan Evans have insisted that there was no collusion by UK security officers.

However, questions remain about exactly when they learnt that the US apparently changed its rules on torture after the 9/11 attacks.

Lady Manningham-Buller, who headed MI5 between 2002 and 2007, said: "The Americans were very keen that people like us did not discover what they were doing."

In a lecture at an event organised by the Mile End Group, she said she had wondered, in 2002 and 2003, how the US had been able to supply the UK with intelligence from Mohamed and was told that he was "very proud of his achievements when questioned about it".

"It wasn’t actually until after I retired that I read that, in fact, he had been waterboarded 160 times," she said.

Lady Manningham-Buller said the government had lodged "protests" with the US about its treatment of detainees, but refused to go into further detail.

A Foreign Office spokeswoman was not prepared to comment on the former MI5 chief’s comments.

She said the Foreign Office could not, at this stage, find any details of protests lodged by the British government with the US over the treatment of detainees.</p

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China’s exports jumped by 46% in February compared with a year ago, raising hopes of a strong recovery in global trade.

The increase was higher than analysts’ expectations of a rise of between 35% and 40%.

It is likely to increase pressure on the Chinese government to raise the value of the yuan, which the US in particular complains is undervalued.

China’s imports also rose strongly, increasing by 44.7% last month.

The big growth in imports was helped by the government’s economic stimulus spending.

The rise in imports reduced China’s trade surplus to a one-year low of $7.6bn (£5bn) for February.

Beijing had kept the yuan at the same level against the US dollar for 18 months, to help its exporters.

This has angered the US, which says the Chinese government keeps the yuan unfairly undervalued, and Washington continues to call on Beijing to allow the currency to float freely to reflect its true market value.

However, China’s central bank governor, Zhou Xiaochuan, said at the weekend that the government was "very cautious" about easing exchange rate controls because the global economic outlook was still uncertain.</p

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Unidentified gunmen have attacked the office of a Western aid agency in Pakistan, killing up to five people, the police said.

The victims, including two women, were all Pakistanis, reports say.

The attack took place on the office of the World Vision in Mansehra district, 65 km (40 miles), north of Islamabad, the police said.

Islamic militants have attacked offices of foreign NGOs in the past in Pakistan, correspondents say.

Police official Sajid Khan told the AFP news agency that some armed people had "stormed" the building of the NGO.

"There was firing and also an explosion inside," he said.

The police said that the gunmen opened fire and exploded grenades once inside the building.

One unidentified aid worker said the gunmen had "engaged in battle with the police" inside the building.

Attacks on aid workers are not uncommon in Pakistan.

Last year three local female aid workers and their male driver were kidnapped and killed after they left Mansehra town to inspect a school for possible funding by the American development agency, USAID.

In February 2008, British aid agency Plan International suspended its operations in Pakistan after three of its workers were killed in an attack on its office in Mansehra.

Correspondents say Mansehra had served as a base for militants operating in Afghanistan and Kashmir.

Militant groups and religious parties in Pakistan have often accused non-governmental organisations (NGOs) of spreading "vulgarity" in society.

This is because the NGOs mostly employ women workers and organise mixed social gatherings in line with their professed policy of gender equality, observers say. </p

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.