From Haaretz:
Strategic Affairs Minister Moshe Ya'alon spoke to Channel 2 on Saturday about the meeting between Prime Minister Benjamin Netanyahu and U.S. President Barack Obama, held earlier this week, saying that Israel's government will not allow the U.S. to dictate its policy, and that “settlement construction will not be halted.”
“Settlements are not the reason that the peace process is failing, they were never an obstacle, not at any stage,” Ya'alon told Channel 2 News. “Even when Israel pulled out of [Palestinian] territory, the terror continued. Even when we uprooted [Jewish] communities, we got 'Hamastan.' That is why I propose that we think about it – not in slogans and not with decrees.”
According to Ayalon, “we will not halt the construction in the settlements within the framework of natural growth. There are people here who are living their lives, raising children. Housing is required ? it wasn't housing that has prevented peace.”
More here.