(21 Mar 2010) 1. Israeli Prime Minister Benjamin Netanyahu arriving at weekly cabinet meeting 2. SOUNDBITE: (Hebrew) Ehud Barak, Israeli Defence Minister: "I hope that with these meetings we are contributing to putting Israel on the track that will lead us to the renewal of substantial, real and thorough negotiations, and not only proximity talks with the Palestinians." 3. Israeli Defence Minister Ehud Barak entering meeting 4. Zoom in to Netanyahu in cabinet meeting 5. Wide of Israeli ministers at meeting 6. SOUNDBITE: (Hebrew) Benjamin Netanyahu, Israeli Prime Minister: "Our policy regarding Jerusalem is the same policy that has been lead by all Israeli governments in the last 42 years, it has not changed for us. Building in Jerusalem is like building in Tel Aviv we have clarified this position with the US governance, we also clarified that in these proximity talks with the Palestinians each side will be able to bring up any issue that is in dispute, but a real solution to the basic problems between us and the Palestinians will only be achieved in direct talks, and direct negotiations for peace." 7. Pan from media to cabinet meeting 8. Wide pan of cabinet meeting STORYLINE: Israeli Prime Minister Benjamin Netanyahu said on Sunday he would not restrict construction in East Jerusalem, but would upgrade upcoming indirect talks with the Palestinians to include the main issues dividing them. Netanyahu originally had wanted to put off a discussion of issues like the status of contested East Jerusalem, final borders and the fate of Palestinian refugees until direct talks are launched. "Our policy regarding Jerusalem is the same policy that has been lead by all Israeli governments in the last 42 years, it has not changed for us," the Israeli Prime Minister said. It was not clear what Netanyahu''s declared refusal to budge on East Jerusalem, the territory that lies at the crux of the Israeli-Palestinian conflict, would mean for future relations with Washington and the rest of the international community. Netanyahu''s moves go nowhere near the US demand to cancel a major new housing project at the heart of the row, but apparently he has offered enough to prompt US Secretary of State Hillary Rodham Clinton to call them "useful and productive" and dispatch an envoy back to the region this week. Netanyahu also told his Cabinet that the US-brokered talks with the Palestinians would include a discussion of the main issues between them, but added that a "real resolution" of the conflicts could only be achieved in direct talks. "I hope that with these meetings we are contributing to putting Israel on the track that will lead us to the renewal of substantial, real and thorough negotiations, and not only proximity talks with the Palestinians," said Israeli defence minister Ehud Barak. UN chief Ban Ki-moon, who was touring the Gaza Strip on Sunday, told reporters that Netanyahu would be meeting with President Barack Obama while in the US. The prime minister''s office had no immediate confirmation. The row over East Jerusalem construction held up the start of the indirect talks, which are to be brokered by Washington''s special Mideast envoy, George Mitchell. Israeli construction in east Jerusalem is such a fraught issue because it challenges Palestinian claims to that sector of the city as a future capital. The announcement of a major new building project during Vice President Joe Biden''s visit earlier this month insulted Washington and provoked the biggest rift between the two allies in decades. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter: / ap_archive Facebook: / aparchives Instagram: / apnews You can license this story through AP Archive: http://www.aparchive.com/metadata/you...