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Another challenge for the obama administration, getting the middle east peace process back on track. earlier this week, both israel and the united states addressed the contentious settlement issue head-on. >> new construction in east jerusalem or the west bank undermines that mutual trust and endangers the proximity talks that are the first step toward the full negotiations that both sides say they want and need. >> the jewish people were building jerusalem 3,000 years ago, and the jewish people are building jerusalem today. jerusalem is not a settlement. it's our capital. >> now, shortly afte...

That revealed simmering democratic tensions between the two countries. netanyahu refused to yield to u.s. pressure to halt construction of housing units in east jerusalem. here are the back and forths. >> the jewish people were building jerusalem 3,000 years ago. and the jewish people are building jerusalem today. jerusalem is not a settlement. it's our capital. >> new construction in east jerusalem or the west bank undermines that mutual trust and endangers the proximity talks that are the first step toward the full negotiations that both sides say they want and need. and it exposes daylight ...

Clinton and netanyahu presenting duelling views over the new construction settlements in jerusalem and first, secretary clinton from last night. >> new construction in east jerusalem or the west bank undermines the mutual trust and endangers the proximity talks that are the first steps toward the full negotiations that both sides say they wants, and need. -- they want and need an exposes daylight between israel and the united states, others in the region hope to exploit. bill: that was her argument earlier in the day and later in the day, speaking 8,000 pro israeli activists, netanyahu did not...

International community does not recognize as israeli sovereignty. so it's, and what's important about jerusalem in particular is that jewish construction in arab east jerusalem is, is changing the demographics there. and the clinton administration proposed dividing jerusalem based on demographics. that is, predominantly arab neighborhoods would become part of a future palestinian state. so and jewish neighborhoods would stay with israel. so that's why this is important. and that's why the palestinians are frustrated about it. and the obama administration is trying to make its point clear. but...

Driveway any moment now. we'll show that to our viewers. but here's what the prime minister benjamin netanyahu said last night at a conference of pro israeli activists in washington. >> the jewish people were building jerusalem 3,000 years ago and the jewish people are building jerusalem today. jerusalem is not a settlement. it's our capital. >> and you see the limousine bringing in the prime minister of israel into the white house. they're going to be walking into the west wing of the white house, moving into the driveway right there. david, you're very familiar with that scene, as we see the...