Israeli minister wants settlements,peace

JERUSALEM, July 1 (UPI) -- Israel's defense minister says settlement building should not block peace negotiations.

Israeli media Wednesday reported Ehud Barak made the remark at a meeting with U.S. Middle East envoy George Mitchell Tuesday.

Maariv quoted Barak as saying when he was prime minister, Israel took "courageous steps" toward peace while at the same time settlement construction reached a peak. The paper said Barak cited the example to Mitchell to emphasize settlement construction does not contradict or prevent Israel from advancing the Palestinian peace process.

Barack said progress will not be made if the U.S. administration continues to focus on the settlements issue rather than on how to attain a comprehensive regional peace deal, the paper said.

An Israeli source told the paper while the atmosphere between Israel and the United States has noticeably improved, no compromise was reached in the meeting. Both sides, however, appeared keen to find a formula to move the process forward.

The paper described the joint statement issued by the two officials following their meeting as "an attempt to quell the flames and improve the general atmosphere."