Palestinians, Israeli police clash in Jerusalem

Dozens of rock-throwing Palestinians clashed with police in several locations in East Jerusalem, which Israel captured in a 1967 war along with the West Bank. Police responded with teargas and rubber bullets.

Medical officials said at least 40 Palestinians were treated in East Jerusalem hospitals. Police said two policemen were hurt.

The violence was another challenge to U.S. efforts to revive Middle East peace talks after Israel angered Palestinians and touched off a dispute with Washington by announcing plans to build 1,600 homes for Jews in a part of the occupied West Bank it annexed to Jerusalem.

U.S. Middle East envoy George Mitchell cancelled plans to return to the region on Tuesday after Prime Minister Benjamin Netanyahu said he would not curb such construction, opposed by the United States, in and around East Jerusalem.

"There is an explosive situation. There are Netanyahu's policies, which are tantamount to pouring oil on fire," said Palestinian chief negotiator Saeb Erekat.

Hamas, an Islamist group that controls the Gaza Strip, said in a statement that Palestinians should "regard Tuesday as a day of rage against the occupation's (Israel's) procedures in Jerusalem against al-Aqsa mosque."

Hamas leaders made particular mention of the renovation of the Hurva synagogue, in the Jewish Quarter of Jerusalem's walled Old City, saying the restoration work was an Israeli plot to demolish al-Aqsa, some 400 metres (yards) away.

Israel has denied the allegation and the U.S. State Department, appealing for calm, voiced concern at what it described as Palestinian incitement and mischaracterisation of the renovation of the 18th century synagogue.

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