Hijjah 04, 1431 H/Nov. 10, 2010, SPA --Secretary of State Hillary Rodham Clinton on Wednesday criticized Israel's latest plans for building housing in disputed east Jerusalem, calling them an obstacle to restarting peace talks with the Palestinians. «The United States was deeply disappointed by the announcement of advance planning for new housing units in sensitive areas of east Alquds,» AP cited Clinton as telling reporters at the State Department. «This announcement was counterproductive to our efforts to resume negotiations between the parties. We have long urged both parties to avoid actions which could undermine trust, including in Alquds.» Her remarks came one day before she was scheduled to meet Israeli Prime Minister Benjamin Netanyahu in New York and appeared to reflect the administration's frustration that Israel has rejected its call to halt construction in disputed areas. Netanyahu's government has defended the construction plans, but the U.S. and the Palestinians both view them as provocations that hurt prospects for restarting U.S.-led talks. Those negotiations began in September but quickly stalled over the issue of Israeli settlement construction. The Palestinians hope to make eastern Alquds the capital of a future Palestinian state. She coupled her criticism with the announcement of $150 million in additional U.S. aid to the Palestinian Authority. The aim is to help the Palestinians create the government for their new state that would exist beside Israel, as envisioned in the now-stalled peace negotiations. The administration provided about $600 million in aid to the Palestinian Authority in its 2010 budget, and it has asked Congress for authority to provide a similar amount in the 2011 fiscal year. Clinton said the financial aid «gives confidence to negotiators, removes excuses for delay and underscores that the Palestinian Authority has become a credible partner for peace.» The money is part of U.S. and international support for Palestinian efforts to establish the basic institutions of a state, including a justice system and a viable economy.