Kerry Talks Peace, Settlements with Netanyahu, Abbas

Top U.S. diplomat John Kerry spoke by phone with Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas about settlements and the Mideast peace process, the State Department said Friday.

The calls -- Thursday with Netanyahu and Friday with Abbas -- come on the heels of a State Department warning directed at Israel that continued settlement activity in east Jerusalem was "counterproductive" to efforts to reach a peace deal with the Palestinians.

The warning Thursday was a reaction to reports Israel is planning more than 1,000 new settler homes in east Jerusalem. Israel said the plans were not new and accused the Palestinians of seeking a pretext to avoid a resumption of direct talks.

The secretary of state "did raise this issue (with Netanyahu) as part of a broader conversation about the ongoing desire to move back to the negotiating table," said State Department spokeswoman Jennifer Psaki.

The top U.S. diplomat reiterated that "we feel these activities are counterproductive to the cause of peace. They're not constructive," she added.

Kerry spoke with Abbas Friday morning "about the continuing process" for peace that has stalled since September 2010, Psaki said.

The Palestinian leadership wants a total freeze on Israeli settlement construction before it resumes peace talks.

The State Department chief traveled to Israel, the West Bank and Jordan less than a week ago on his fourth trip since March in an attempt to re-launch direct talks between the two sides and achieve a two-state solution.