Construction on Israeli settlement in the West Bank
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Middle East settlement talks 'making progress'

Israeli and Palestinian leaders are "making progress" on the issue of Jewish settlement building in the West Bank, US envoy George Mitchell has said.

Mr Mitchell was speaking afte a second day of peace talks between the sides, mediated by US Secretary of State Hillary Clinton.

The Palestinians say they will walk out of the talks if Israel does not extend its ban on settlement building, but Israel has so far refused to renew the restrictions.

Kim Ghattas reports from Jerusalem.

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