The Arab League has threatened to review...

The Arab League, which earlier supported the U.S.-backed initiative, held on Wednesday an emergency meeting following Israel"s decision to build 1,600 new housing units in East Jerusalem.

The league"s Arab peace initiative committee said in a statement "in case of the failure to stop the Israeli measures immediately ... the committee concludes that the proposed talks are irrelevant."

The committee"s decision is only a recommendation, which is still to be considered by the Arab states" foreign ministers.

During a news conference, which followed the meeting, Arab League chief Amr Moussa said the Palestinians were "not ready to negotiate under the present circumstances."

The Middle East peace process made progress earlier this month, when the Palestinian authorities agreed to hold U.S.-mediated indirect peace talks with Israel after a 14-month break.

However, Israeli government"s intention to build new settlements in East Jerusalem poses a new threat

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