Israel is planning building 3,000 settler homes in east Jerusalem and West bank; the decision is quoted as "counterproductive" by us Secretary of State Hillary Clinton.

She has criticized Israel's move and said it was a real setback for peace initiatives. Speaking from a forum in Washington, Clinton said such activities will hamper peace. She addressed audience that included Avigdor Lieberman, the Israeli foreign Minister, and Ehud Barak, the Defense Minister.

The forum was hosted by Saban Center for Middle East Policy. She called for peace saying the appreciable way out from the stalemate in Gaza should be peace between Israel and Palestinians. She asked the Palestinian Authority to lead the cause.

The US administration had earlier taken steps to stop Palestinians from getting recognition by the UN since it said that it would be big problem in achieving peace. President Barack Obama asked them to achieve their motive peacefully by negotiations with Israel.

"I think that even if you cannot reach a complete, it's in Israel's interest to be trying. It gives Israel a moral high ground that I want Israel to occupy", said Clinton.