World / Condoleezza Rice New Israeli Settlements Have 'Negative Effect': Rice She warns against building 1,300 new units in Jerusalem By Kate Rockwood, Newser Staff Posted Jun 15, 2008 3:34 PM CDT Copied Palestinian President Mahmoud Abbas, right, and U.S. Secretary of State Condoleezza Rice shake hands following a press conference in Ramallah, Sunday, June 15, 2008. (AP Photo/Muhammed Muheisen) Condoleezza Rice said today that Israeli settlement building is having a “negative effect” on Mideast peace talks, the AP reports. “It’s important to have an atmosphere of confidence and trust,” she said at a news conference with Palestinian President Mahmoud Abbas. She warned against Israel’s plan to build 1,300 new housing units in east Jerusalem, which Palestine wants for its future capital. (More Condoleezza Rice stories.) Report an error