Haaretz: "U.S. not opposed to Israel pumping more funds into settlements."
From Rashid Khalidi’s book, The Iron Cage. Please note Khalidi describes U.S. policy from nearly 20 years ago, never enforced.
…the United States failed to respect its own commitments in the joint U.S.-Soviet letter of invitation to the Madrid Peace Conference, and particularly in the U.S. letter of assurance to the Palestinians, both dated October 18, 1991. The latter set out the U.S. position regarding actions by either side that would prejudge, preempt, or predetermine the outcome of the deferred final status negotiaions. Described as "U.S. understandings and intentions" regarding the negotiating process, which it said was aimed, among other things, to provide "an end to Israeli occupation," the letter stressed that nothing done in this phase should "be prejudicial or precedential to the outcome of the negotiations." It affirmed: "We encourage all sides to avoid unilateral acts that would exacerbate local tensions or make negotiations more difficult or preempt their final outcome." The letter further stated: "The United States has long believed that no party should take unilateral actions that seek to predetermine issues that can only be resolved through negotiations. In this regard the United States has opposed and will continue to oppose settlement activity in the territories occupied in 1967, which remain an obstacle to peace."
