Secretary of State Hillary Rodham Clinton gave no ground Monday on U.S. opposition to Israeli construction in disputed areas, signaling that Washington would continue pressing Israel during two days of high-profile events.

Clinton told a powerful, pro-Israel lobbying organization that U.S.-Israeli ties were "rock solid." But she did not retreat from the Obama administration's condemnation this month of Israel's plans for 1,600 new housing units in disputed East Jerusalem.

Israeli Prime Minister Benjamin Netanyahu was scheduled to address the same conference, held by the American Israel Public Affairs Committee. In his speech, Netanyahu was expected to declare a strong Israeli right to build in Jerusalem, while stopping short of announcing that Israel would be rolling out new projects soon.

A draft of his speech, which was subject to revision, said: "The Jewish people were building Jerusalem 3,000 years ago, and the Jewish people are building Jerusalem today. Jerusalem is not a settlement. It is our capital."

Before his speech, Netanyahu met with Clinton and had dinner with Vice President Joe Biden. The Israeli leader was scheduled to meet Tuesday with President Obama.

The diplomatic dispute erupted during Biden's visit to Israel this month, when Israeli officials announced the new project in the Ramat Shlomo area of East Jerusalem.

Such projects are bitterly opposed by Palestinians, and the latest announcement threatened the start of peace talks sought by Obama. Clinton told AIPAC that such actions undermined talks and weakened the American role as go-between.

"Our credibility in this process depends in part on our willingness to praise both sides when they are courageous, and when we don't agree, to say so, and say so unequivocally," she said.

Clinton praised Netanyahu for proposing some steps to rebuild Palestinian confidence, including lifting roadblocks and easing movement of Palestinians in the West Bank. But she said that "we also expect Israel to continue taking concrete steps" that will help move toward a comprehensive peace deal.

Netanyahu's insistence on expanding construction in East Jerusalem has earned him support among Israelis, but has also focused renewed international attention on the practice.

The recent controversy appears to have galvanized international opposition to Jewish expansion in East Jerusalem.

On Monday, European Union foreign ministers expressed disappointment in Netanyahu's position that Israel has as much right to build in East Jerusalem as it does in Tel Aviv.

"I can say very clearly that Jerusalem is not Tel Aviv," Luxembourg Foreign Minister Jean Asselborn was quoted as saying in Brussels. The so-called quartet, which includes the U.S., U.N., EU and Russia, also voiced displeasure.

Two housing projects in East Jerusalem have been put on hold and some planning meetings were postponed this week to avoid any embarrassing announcements while Netanyahu is in the U.S., according to reports in Israeli newspapers.