ROAD BEING LAID IN HAR HOMA BUILDING SITE IN EAST JERUSALEM, 1997-10-01 (photo)

Palestinian workers on machinery October 1 laying blacktop on a road for the first time in the controversial Har Homa building site in Arab East Jerusalem. The construction at this area, and in Efrat in the West Bank, continues despite the United States stressing that a "time out" is needed in the peace process, and Israel agreeing to such. Netanyahu yesterday stressed that settlement construction would continue as each side in the peace process has its opinion of what exactly the "time out" signifies. Jerusalem Mayor Ehud Olmert vowed that work at Har Homa would continue and said that within two years some 5,000 Jewish families would be living in the new neighborhood. MIDEAST