JERUSALEM (AP):

United States Secretary of State Condoleezza Rice had barely left Israel yesterday following her latest peacekeeping mission when Israeli officials announced plans to build 1,400 new homes on land Palestinians claim for a future state.

Prime Minister Ehud Olmert vowed to keep building in east Jerusalem and the West Bank, dismissing Palestinian claims that construction on contested land is the greatest obstacle to peace.

The disclosure of the con-struction plans immediately after Rice's visit demonstrated the intensity of the political pressures that Olmert faces.

He continues to support construction in disputed areas, over the objections of the Palestinians and the US, because it allows him to keep his fragile coalition intact. Monday's announcement about more construction, just hours after Rice's departure, appeared particu-larly defiant.

Abbas under pressure

The Israeli construction plans threatened to make it even harder for Palestinian President Mahmoud Abbas to convince sceptical Palestinians that diplomacy, not violence, would win them a state.

Rice arrived in the region last Saturday for three days of talks with Israeli and Palestinian officials meant to advance the US goal of achieving a peace agreement before US President George W. Bush leaves office in January 2009. A senior US official said the US would like to push for an outline of an interim peace agreement by the time Bush visits the region in May.

At a news conference with Abbas in Jordan, Rice said it was her impression that both sides were serious about advancing the talks.

"I think it's all moving in the right direction," she said.

But she also warned Israel to halt new settlement activities that could upset progress.

"Settlement activity should stop - expansion should stop," Rice said.