RAMALLAH. March 11. KAZINFORM US Vice President Joe Biden publicly scolded Israel on Wednesday over a Jewish settlement plan, saying it was undermining peace efforts after Palestinians agreed to US-mediated talks, Kazinform refers to Arab News.

"It is incumbent on both parties to build an atmosphere of support for negotiations and not to complicate them," Biden said in a media statement alongside Palestinian President Mahmoud Abbas in the West Bank city of Ramallah.

"Yesterday the decision by the Israeli government to advance planning for new housing units in East Jerusalem undermines that very trust, the trust that we need right now in order to begin ... profitable negotiations," Biden said.

In Jerusalem, an Israeli Cabinet minister apologized for what he termed "real embarrassment" caused to Biden by the news on Tuesday that Israel would erect 1,600 homes in an area of the occupied West Bank it annexed to the holy city.

Aides to Israeli Prime Minister Benjamin Netanyahu said he had been blindsided by the announcement of the plan by the Interior Ministry, run by Shas, an ultraorthodox nationalist party that is a key member of his governing coalition.

Abbas, who agreed to indirect talks with Israel after he had made a settlement freeze a condition for resuming peace negotiations, urged Israeli leaders to cancel the decision.

But the Palestinian leader gave no indication the so-called "proximity talks" would not proceed. No date, venue or agenda has been set. "The American administration must put pressure on Israel so the indirect talks are not obstructed," said Nabil Abu Rudainah, an Abbas aide, Kazinform cites Arab News. See www.arabnews.com for full version.