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Prime Minister Benjamin Netanyahu countered a controversial United Nations address by Foreign Minister Avigdor Lieberman on Tuesday, rejecting Lieberman's views on a possible land swap and asserting his belief that Israel and Palestinians could reach a peace deal within a year.
In the four weeks since direct Israeli-Palestinian peace talks resumed, settlement construction has been identified widely as the most immediate obstacle to the survival of negotiations.
Israel allowed a politically charged freeze on Jewish settlement building in the West Bank to expire on Sunday, but the Palestinians did not carry out a threat to quit peace negotiations, setting the stage for further frantic efforts to keep the talks alive.