Beitar Illit, West Bank, Aug. 17 (UPI) -- The Israeli government Tuesday published tenders for the construction of 1,001 housing units in the West Bank despite the government´s undertaking to freeze all settlement activity.

The tenders call for building 604 housing units in Beitar Illit west of Bethlehem, 214 in Ariel situated between Nablus and Ramallah, 141 in Maaleh Adumim southeast of Jerusalem, and 42 in Karnei Shomron west of Nablus.

A Housing Ministry official said it usually takes two years until such houses are built.

Housing Minister Zippi Livni said the planned homes would be built "inside towns that are part of big settlement blocs, (and they) have nothing to do with the separation plan." Livni was referring to the government´s plan to withdraw from the Gaza Strip and from four settlements in the northern West Bank.

The new construction is "part of government policy and the consensus in Israel," she maintained.

A senior source in the Prime Minister´s Office who spoke to United Press International on condition of anonymity said Israel was abiding by an annex in an exchange of letters with the U.S. administration.

"They will build. They will build. Inside the built-up area," the official stressed.

The roadmap for peace that the United States, the European Union, the United Nations and Russia presented last year, and which Israel and the Palestinian Authority have accepted, says Israel should freeze "all settlement activity (including natural growth of settlements)."

The Israeli official maintained there were "different interpretations of the roadmap" and that Israel was adhering to understandings reached with the United States. Those allow for construction to meet "current needs" in built-up areas," though not outside them, he said.

"If they will build a kindergarten or add a house in the area, it´s OK and it will be done," he added.

The U.S. Embassy´s spokesman in Tel Aviv, Paul B. Patin, told UPI: "The roadmap has been accepted by Israel, and we expect Israel to abide by its roadmap commitments."

Nevertheless, both countries are now discussing the issue, and the American administration has, in practice, put up with the fact Israel has a "different interpretation," UPI was told.

Aerial photos were made for the two sides to determine the line of permitted construction, and U.S. Ambassador to Israel Daniel Kurtzer has been meeting the Defense Minister´s assistant, Baruh Spiegel, to discuss the issues.

Their last meeting was Monday. An American team is expected in Israel to monitor and discuss the issues.

The opposition Labor Party criticized the tenders as "dangerous to the state´s future and security." They "widen the rift and mistrust breached with the United States over the settlement issue," the head of Labor´s Reactions Team, Knesset Member Ophir Pines, said.

Pines asked party leader Shimon Peres to demand the plans be scrapped as condition for continuing talks on joining the government. However, Peres has not done so.

In an interview on Israel Radio, Peres said Labor and the ruling Likud Party "completed the political negotiations" and have begun the talks on economic policies. Peres has advocated joining the government to ensure the pullback but said he is withholding final consent until "we see the conclusion (of the talks)."

Peace Now slammed the plan as "unprecedented ... real government madness."

"Why must we cheat the world every time?" Peace Now´s Director General Yariv Oppenheimer asked. "Is this the place where construction is most pressing, right where we ... break (our) promises?"

Oppenheimer told UPI he believed Prime Minister Ariel Sharon wants to withdraw from Gaza and the four West Bank settlements, but the chances that would happen are unclear because of the strong opposition he is facing: He wants to evacuate illegal outposts, but they are still in place.

"If the government would evacuate outposts, implement the separation (plan), and then want to build inside settlements -- it (the plans) would have been an arguable matter. However, now, when it does not fulfill its basic commitments, every violation is severe," Oppenheimer argued.

He said that according to Peace Now´s last count, made several months ago, some 3,700 units are under construction.

The town where most of the new houses are to be built, Beitar Illit, is situated at the site of the last Jewish stronghold that the Romans destroyed in 120 AD, the city´s Mayor, Rabbi Yitschak Pindrus, said in an interview.

Pindrus confirmed the slated construction sites in Beitar Illit are within the city´s boundaries. The Housing Ministry completed their development half a year ago, and its preparations would reduce the flats´ prices.

The city of 27,000 residents has attracted young ultra-orthodox families, which are one of the fastest growing sectors in Israel.

"Three thousand ultra-orthodox couples marry a year. They need flats, and Jerusalem and (the old ultra-orthodox town of) Bnei Brak cannot provide them," Pindrus said.

The road to Beitar Illit passes high iron mesh fences to prevent Palestinians in the neighboring village of Hussan from stoning settlers. There have been attempts to hurl firebombs. An army camp is situated at the entrance to Beitar Illit, and armored personnel carriers are parked near the tents.

The city seems to have rabbinical schools and synagogues everywhere. There are four ritual baths for women and at least six for men. All over, one sees men in big black skullcaps, ear locks, and women in wide, ankle-length skirts.

Ten percent of its residents immigrated from abroad, mainly from New York but also from Los Angeles, Britain, South Africa and Australia, Pindrus said.

"In absolute numbers this does not exceed natural growth because some people leave," he told UPI.

"It´s a lovely place. It is an all-ultra-orthodox city," said Moshe Rubinfine, sitting in a park in traditional black pants abd white shirt with threads of a religious shawl dangling over his belt.

"It´s cheaper to live here," noted Ilanit Azulai. Most couples would like to live in Jerusalem but do not have the budget for it, so they come here."

A four-room apartment in Beitar Illit should cost $110,000 compared with $240,000 to $250,000 in Jerusalem or Bnei Brak, a municipal official said Tuesday.

Azulai, a mother of seven, said: "Usually it is quiet here, (but) sometimes it is scary to leave and there is nothing you can do about it."

Beitar Illit sprawls on several hillsides, and at Hill B workers were building a new school. Seventy-eight houses built near it were sold, though people have not moved in yet, said marketing agent Ronit Zaken.

The sign her company put up said: "We don´t sell dreams. We build them." (Copyright 2004 United Press International 08/17/04)