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Source: http://www.washingtonpost.com/wp-dyn/content/article/2009/05/23/AR2009052301536.html
Settlement Issue Is Complicated by Bush Agreement
[Washington Post] Glenn Kessler and Howard Schneider - The Obama administration is pressing the Israeli government to halt the expansion of Jewish settlements, seeking a visible symbol that might inspire Arab states to consider normalizing relations with Jerusalem. But the administration's effort has been complicated by an unwritten agreement on the issue between Israel and the U.S. reached during the Bush administration. While in Washington, Prime Minister Netanyahu argued that Israel already dismantled settlements in the Gaza Strip, going beyond the Roadmap, and was rewarded with the takeover of Gaza by Hamas and hundreds of rockets raining on Israeli towns, Israeli sources said. Netanyahu spokesman Mark Regev said there are no plans for a full settlement freeze. "The issue of settlements is a final status issue, and until there are final status arrangements, it would not be fair to kill normal life inside existing communities," he said. Regev said the Israeli government is relying on "understandings" between former president George W. Bush and former prime minister Ariel Sharon that some of the larger settlements in the West Bank would ultimately become part of Israel, codified in a letter that Bush gave to Sharon in 2004. In an interview with the Washington Post last year, Sharon aide Dov Weissglas said that in 2005 the Bush administration arrived at a secret agreement that Israel could add homes in settlements it expected to keep, as long as the construction was dictated by market demand, not subsidies. Elliott Abrams, a former deputy national security adviser who negotiated the arrangement with Weissglas, confirmed the deal in an interview last week.