West Bank: Settlement row clouds peace talks

Abbas said talks over Jerusalem and refugees would not begin until settlement activity stopped [EPA]

Israeli and Palestinian negotiators are set to meet for a second round of peace negotiations, amid a new dispute over Jewish settlement building near occupied Jerusalem. Monday's meeting will come within hours of Israeli jets killing in a raid two members of the Hamas group that rules the Gaza Strip, according to Hamas and Palestinian doctors.

The Israeli army spokesman confirmed the attack, saying the men were located in the area of Bureij refugee camp not far from the Gaza-Israel border. A third Hamas fighter was seriously wounded in the attack, Hamas said.

The Israeli soldiers were not located inside the Gaza Strip, the country's army spokesman said.

Talks agenda

On the political front, aides to Mahmoud Abbas, the Palestinian president, said that substantive talks over borders and the fate of Jerusalem and Palestinian refugees would not begin until Israel committed to halting all settlement activity.

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