United Nations Secretary-General Ban Ki-moon slammed Israel's refusal to halt West Bank settlement building, saying that this refusal seriously hampered peace talks with the Palestinians, AFP reported on Friday.

"Settlements in the occupied Palestinian territory are illegal under international law, contravene the Road Map obligations of Israel, undermine confidence, prejudge the outcome of the permanent status negotiations and hamper efforts at bringing the parties back to the negotiating table," he told a UN committee dealing with Palestinian issues on Friday.

Earlier in the week, Arab nations submitted a draft resolution to the UN Security Council condemning Israeli settlements in the West Bank, but a vote on it is not expected any time soon because of a likely U.S. veto.

The secretary-general also called for a halt to "irresponsible rhetoric" that questions a two-state Israeli-Palestinian solution and incites hatred and violence.

Palestinians have the right to an independent state, Israel has a right to live in peace within secure borders, and a way must be found for Jerusalem to emerge as the capital of the two states, Ban said.

Diplomats say that the point of the draft resolution condemning settlement building is to highlight Washington's isolated position on the Security Council, show the Palestinian population that the Palestinian Authority is taking action, and to pressure Israel and the United States on the settlement issue.

Council diplomats said privately that the 15-nation panel was unlikely to take any action on the draft resolution in the near future - if at all - because of the likely veto.

It has nearly 120 co-sponsors, exclusively Arab and other non-aligned nations. UN diplomats said that the draft would probably receive 14 votes in favor and the one veto if put to an immediate vote.

The draft says that "Israeli settlements established in the Palestinian Territory occupied since 1967, including East Jerusalem, are illegal and constitute a major obstacle to the achievement of a just, lasting and comprehensive peace."

Intensive U.S. diplomatic efforts to revive direct peace talks between Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas collapsed last year after Israel failed to extend a 10-month freeze on West Bank settlement construction.

Israel has repeatedly called for a resumption of direct negotiations with the Palestinians. But the Palestinians have refused to return to the negotiating table until Israel first agrees to halt settlement work.

