such building, something that the obama administration is demanding, something defense minister ehud barak said today is "a national necessity." but expansion of existing settlements is continuing, something that got little attention when it was announced yesterday. the story was covered by our partner, abc of australia, and ben knight's report from the "late line" program is our lead focus tonight. >> reporter: on a hill outside jerusalem, the first saudi's turn in a new neighborhood, one that the u.s. does not want to go ahead. even george w. bush pressured israel not to allow this project to happen. if it does, it would join the outlying settlement with jerusalem on land palestinians want for their own state. according to the international community, this land is not pa of israel, but that doesn't mean much here. >> this is definitely a part of israel. is new york part of america? they took that from the indians. >> reporter: but this is also a message to israel's government to stand up to foreign pressure to stop building here in the west bank, happening on the same day israel's defens