Israeli Deputy Prime Minister and Interior Minister Eli Yishai said on Thursday that he would continue approving construction plans in contested areas of Jerusalem, including the Ramat Shlomo neighborhood.

"There is not and never has been a freeze on construction in Jerusalem, nor will there ever be," Yishai told his Shas Party newspaper, "day by day."

Concerning the Israeli-Palestinian proximity talks, American officials on Thursday asked both sides to refrain from what they termed "provocative" moves, but Yishai said that Israel would not accede to U.S. demands.

"We will build everywhere in the capital of the Jewish nation's everlasting homeland, and I have clarified this to our American counterparts and friends," Yishai was quoted by local Ha'aretz daily as saying.

Israeli Defense Minister Ehud Barak quickly responded to Yishai 's and other officials' comments in recent days supporting construction in areas under dispute with Palestinians.

"I recommend everyone, both we and the Palestinians, avoid rash and provocative statements," Barak said, adding that, "these comments harm Israel's interests, both with regard to the United States and to the international community."

In March, a planning subcommittee in Yishai's ministry approved an interim stage of construction of 1,600 housing units in Ramat Shlomo, a Jewish neighborhood across the Green Line into East Jerusalem.

The timing of that decision, which came in the midst of a visit by American Vice President Joe Biden, bogged down the newly- resumed Israeli-Palestinian peace process, and brought a torrent of criticism against Israel by the United States and international community.

In a statement about the resumption of the indirect peace negotiations, U.S. State Department said on Sunday that Netanyahu promised there will be no construction at the Ramat Shlomo project for two years, but it is not confirmed by the Israeli premier.