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Report: Abbas Backs Out of Peace Talks

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Palestinian President Mahmoud Abbas won't enter into U.S.-mediated peace negotiations with Israel in protest of plans to build some 1,600 new Jewish homes in East Jerusalem, Reuters reports.

"The Palestinian side is not ready to negotiate under the present circumstances," said Arab League chief Amr Moussa, following an emergency meeting of Arab delegates in Cairo. "The talks have already stopped."

On Tuesday, Interior Minister Eli Yishai announced plans to significantly expand Ramat Shlomo, a Haredi neighborhood, which drew a swift condemnation from visiting Vice President Joe Biden.

Abbas and Prime Minister Binyamin Netanyahu had agreed to enter into "proximity" talks on Monday as Washington's Middle East envoy George Mitchell promised to help steer the floundering peace process.

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