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Ms Rice described as unhelpful Israeli plans to build 1,300 new homes in Ramat Shlomo, an area of the West Bank that Israel considers part of Jerusalem.

She said she would raise the issue with Israeli Prime Minister Ehud Olmert.

Palestinian leaders have called the plans a systematic policy to destroy the peace process.

Israel has described the new homes as the natural growth of existing communities.

During her visit, Ms Rice will also meet the Palestinian President, Mahmoud Abbas, in the West Bank city of Ramallah.

Speaking in Jerusalem, she said of the Ramat Shlomo housing plans:

"Look, it's a problem and I think it's a problem that we're going to address with the Israelis.

"It'll certainly be a topic of conversation and I expect to raise it with all of Israel's officials and leaders."

(BBC)

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