Unsettled Claims U.S. and Israeli officials trade angry barbs over an expanded West Bank Jewish presence. JAMES D. BESSER Washington Correspondent Washington trip away the diplomatic and political padding, and the acrimonious debate between Washington and Jerusalem over Jewish settlements that's exploded recently is about one word: trust. But increasingly, key Clinton administration officials are saying they have little of it for the Netanyahu gov- ernment. Confidence isn't much stronger in the reverse direction. U.S. officials say Israeli Prime Minister Binyamin Netanyahu has played them for chumps, especially because of what they say were a series of private assurances on Jewish settlements during October's Wye River conference. • In the long run, this week's hot rhetoric and bruised feelings are not likely to seriously undermine U.S.- if Israeli-Palestinian Israel relations negotiations get back on track after the upcoming Israeli national elec- tions. Harder to gauge is the impact of recent settlement construction on the negotiations themselves. 5/7 concentrated mostly around Jerusalem As Israeli officials are quick to point and near the Green Line. It did not out, settlements are not a new bone of fragment the Palestinian entity sup- contention. posed to emerge from the peace talks. Indeed, Presidents Carter, Ford and But today, critics say, the Netanyahu Bush all knocked heads with Jerusalem government has dra- over the issue. And by the standards of some of Above: With the Palestinian- matically changed the controlled city of Bethlehem thrust of the settle- those fights, even last in the background, a land ments program. week's tough talk by surveyor marks plots at Har Officials in State Department offi- Homa in Jerusalem Sunday. Washington increas- cials was mild. ingly see the new and Even the Rabin and expanded settlements as part of a Peres governments expanded settle- deliberate effort to provoke the ments after the 1993 Oslo accords. Palestinians and alter the demograph- But American officials chose to down- ics of the West Bank, making the play it because they felt the Israeli gov- long-delayed permanent status talks all ernment was moving forward in the but impossible. peace process. That perception was reinforced in Besides, settlement activity then Increase in West Bank/Gaza Jewish residents in past year 14 percent Number of new units 8,608 Number of units being built 3,814 Source: Peace Now the fall when Foreign Minister Ariel Sharon urged Jewish settlers ro "grab (\ more hills. We'll expand the area; whatever is seized will be ours." Sharon's statement flew in the face of Israeli denials that they were engaged in a systematic effort to build new settlements and just allowing for the natural growth of old ones. The rhetoric escalated last week when State Department spokesman James Rubin directly accused the Netanyahu government of lying about settlements. Speaking after a meeting between Defense Minister Moshe Arens and Secretary of State Madeleine, Albright, Rubin said that the Netanyahu govern- ment is "acting and expanding settle- ment activity beyond contiguous areas, inconsistent with their commitments or their words to us. They've said they would not do that repeatedly. Israeli officials insisted they weren't violating any agreement because the settlements in question \ vere not offi- cially sanctioned. Arens, speaking to a Washington think tank, said, "They are not settlements. They are not going to last and I don't think they in anyway are going to change the situa-