<p>The derelict hotel in the heart of a Palestinian neighbourhood was demolished yesterday to build apartments for Jews, and the move elicited strong criticism from the United States and European Union.<br /><br />Israel, however, remained unfazed and the government defended the action.<br />"Actions taken at the Shepherd Hotel were done by private people corresponding with Israeli law," the Prime Minister's Bureau said in a statement adding, "the Israeli government was not involved in the events".<br /><br />The Shepherd Hotel controversy marked the first in a series of disputes between the Netanyahu government and the Obama administration over constructions in east Jerusalem.<br /><br />The new constructions have become a symbol of Jewish settlement plans in east Jerusalem because it is located in the heart of foreign consulates and is not an extension of existing Jewish residential facility.<br /><br />The Israeli statement said: "It cannot be expected from the State of Israel to forbid Jews from purchasing private property in Jerusalem".<br /><br />"There is no democratic country in the world that would impose such a ban on Jews and it cannot be expected that Israel will be the one to do so," it said, justifying the government inaction to prevent the demolition yesterday.<br /><br />"Just as Jerusalem's Arab citizens are allowed to buy or rent assets in Jerusalem's neighbourhoods that have a Jewish majority, Jews are allowed to rent property in a Jerusalem neighbourhood with an Arab majority," it said.<br /><br />Bulldozers began razing parts of the Shepherd Hotel in east Jerusalem yesterday, a move that immediately evoked international condemnation.<br /><br />The hotel, located in the Sheikh Jarrah neighbourhood of the Arab dominated part of the city, was purchased 25 years ago American Jewish businessman, Irving Moskowitz.<br />US Secretary of State Hillary Clinton condemned the construction work and said the move to proceed with an East Jerusalem settlement project by razing a derelict hotel "undermined the peace effort".<br /><br />Egypt and Jordan, the two Arab neighbours that recognise the Jewish state, joined in condemning the move today.</p>
<p>The derelict hotel in the heart of a Palestinian neighbourhood was demolished yesterday to build apartments for Jews, and the move elicited strong criticism from the United States and European Union.<br /><br />Israel, however, remained unfazed and the government defended the action.<br />"Actions taken at the Shepherd Hotel were done by private people corresponding with Israeli law," the Prime Minister's Bureau said in a statement adding, "the Israeli government was not involved in the events".<br /><br />The Shepherd Hotel controversy marked the first in a series of disputes between the Netanyahu government and the Obama administration over constructions in east Jerusalem.<br /><br />The new constructions have become a symbol of Jewish settlement plans in east Jerusalem because it is located in the heart of foreign consulates and is not an extension of existing Jewish residential facility.<br /><br />The Israeli statement said: "It cannot be expected from the State of Israel to forbid Jews from purchasing private property in Jerusalem".<br /><br />"There is no democratic country in the world that would impose such a ban on Jews and it cannot be expected that Israel will be the one to do so," it said, justifying the government inaction to prevent the demolition yesterday.<br /><br />"Just as Jerusalem's Arab citizens are allowed to buy or rent assets in Jerusalem's neighbourhoods that have a Jewish majority, Jews are allowed to rent property in a Jerusalem neighbourhood with an Arab majority," it said.<br /><br />Bulldozers began razing parts of the Shepherd Hotel in east Jerusalem yesterday, a move that immediately evoked international condemnation.<br /><br />The hotel, located in the Sheikh Jarrah neighbourhood of the Arab dominated part of the city, was purchased 25 years ago American Jewish businessman, Irving Moskowitz.<br />US Secretary of State Hillary Clinton condemned the construction work and said the move to proceed with an East Jerusalem settlement project by razing a derelict hotel "undermined the peace effort".<br /><br />Egypt and Jordan, the two Arab neighbours that recognise the Jewish state, joined in condemning the move today.</p>