Palestinian Insists on Halt To Settlements In Jerusalem.

JERUSALEM -- The Palestinian president, Mahmoud Abbas, said Sunday that any American proposal for restarting Israeli-Palestinian negotiations must include East Jerusalem as part of a complete halt in Israeli settlement building. It was not immediately clear whether Mr. Abbas's position, which is consistent with Palestinian policy, would scuttle a proposed deal that the Americans hope will lead to resumption of the negotiations. In the past the sides have found ways to surmount such difficulties. [ABSTRACT FROM AUTHOR]