<p><br /> Israeli Prime Minister Benjamin Netanyahu has declared that "Jerusalem is not a settlement. It is our capital."<br /> </p><p><br /> His comments follow US criticism of the Jewish state's settlement expansion plans in east Jerusalem.<br /> </p><p><br /> His speech in Washington to the American Israel Public Affairs Committee, or AIPAC, an influential pro-Israel lobby group, contrasted sharply with an address Secretary of State Hillary Clinton made at the same forum hours earlier.<br /> </p><p><br /> The United States and Israel have clashed since Netanyahu's coalition government announced plans this month to build 1,600 homes for Jews.<br /> </p><p><br /> Israeli officials said Clinton and Netanyahu had shown at their meeting a desire to put the public feud fuelled by the construction project behind them. The Israeli Prime Minister spoke at length about the bonds between the US and Israel but added that the US could only facilitate the peace process.<br /> </p><p><br /> He said: "Of course the United States can help the parties resolve our problems, but it can only come through direct negotiations in which we develop mutual trust, that mutual trust which is necessary to forge a common future."<br /> </p>
