**US and Israeli diplomats are trying to bridge divisions over Israeli building plans in occupied East Jerusalem, as clashes in the city subsided.**The Palestinians have pulled out of indirect talks because of the plan.
The US is awaiting Israel’s response to its request for gestures to reassure the Palestinians.
Security restrictions have been lifted as clashes between Palestinian stone-throwers and Israeli security forces on Tuesday died down overnight.
Overnight, Israeli Prime Minister Benjamin Netanyahu’s office welcomed comments by US Secretary of State Hillary Clinton dismissing claims that US-Israeli ties were in crisis.
‘Warm remarks’
She had accused Israel of “insulting” and “deeply negative” behaviour after the Israelis announced they had pushed forward plans for 1,600 new homes in East Jerusalem during US Vice President Joe Biden’s visit to the region last week.
She called the bond between the US and Israel “unshakeable”, but also called on Israel and the Palestinians to prove their commitment to peace.
Mr Netanyahu’s office said it appreciated her “warm remarks”, but added that Israel had already proved its commitment to peace “in both word and deed”.
The prime minister and Mr Biden spoke on the phone on Tuesday evening, the New York Times reported.
On Tuesday, US envoy George Mitchell, who had been due to begin “proximity talks”, shuttling between the two sides, postponed a planned visit to Israel.
“We don’t agree with any of our international partners on everything”
Hillary Clinton
US Secretary of State
Views from the US media
Israel-US: A bruised friendship
A White House spokesman said the visit would not take place before the international quartet - the US, UN, EU and Russia - met on Thursday and Friday.
He said the US was waiting for a response by Israel to requests made by Mrs Clinton in a phone call on Friday.
The exact requests have not been made public, but media reports suggest they include a call to halt the controversial building project, requests for confidence-building measures such as a prisoner release, and some kind of Israeli guarantees that negotiations will cover final status issues.
Although he has apologised for the timing of the settlement announcement, Mr Netanyahu has stood by Israel’s policy, telling parliament on Monday there can be “no curbs” on Jewish building in Jerusalem.
Also on Tuesday, Israel’s ambassador to the US, Michael Oren, denied comments widely quoted by Israeli media on Monday as saying that ties between the US and Israel were at their lowest point since 1975.
“This synagogue will be a prelude to violence and religious fanaticism and extremism”
Hatem Abdel Qader,
Fatah Jerusalem spokesman
In pictures: Jerusalem clashes
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The BBC’s Paul Wood in Jerusalem says there seems to be an impasse - if Mr Netanyahu caves in and cancels the new settlements, the stability of his government may be in doubt; if he does not, it is hard to see how the peace talks can take place.
On Tuesday, heightened tensions in Jerusalem led to violent clashes between hundreds of Palestinians and Israeli police.
The police said about 60 Palestinians had been arrested. Dozens of Palestinians and 15 police were injured, including one policeman who was shot in the hand.
The Islamist movement Hamas had called for a “day of rage” in defence of the Muslim holy site, the al-Aqsa mosque, in Jerusalem’s Old City.
Palestinians were angered over Jewish right wingers’ plans to enter the compound, which Jews call the Temple Mount, although police cancelled the event.
The reopening of a synagogue in the Jewish quarter of the Old City also increased tensions, as did five days of Israeli security restrictions limiting access to the al-Aqsa mosque to women and men over the age of 50.
On Wednesday the restrictions were lifted.