THE talks between Israel and the Palestinians are hindered by a new deadlock, this time triggered by Israel's proposed housing programme for Jews in 460 acres of land atop a rolling, pastoral hill in Arab East Jerusalem. The hill forms part of a scenic, biblical landscape that Israelis call Har Homa. To Palestinians, it is Jabal Abu Ghunaim—a link between Jerusalem and the West Bank town of Bethlehem to the south.