Israelis slam Obama statement on Jerusalem

By the CNN Wire Staff

Jerusalem (CNN) - President Barack Obama's disappointment over Israel's plans for new housing in east Jerusalem has drawn criticism from the prime minister's office and the country's settler council.

Appearing before reporters in Indonesia on the second leg of his Asian trip, Obama was asked whether "Israel's advanced planning for more than a thousand new homes in Jerusalem" undermines his peace efforts and trust between Israelis and Palestinians.

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