Israeli Prime Minister Benjamin Netanyahu has asserted Israel's right to build in Jerusalem, following a row with the US over plans for new homes in the city. He told a pro-Israel lobby in Washington that Jerusalem is not a settlement, but Israel's capital. <br/><br/>Mr Netanyahu said he is simply following the policies of all Israeli governments since 1967, when Israel won a war with its Arab neighbours and seized East Jerusalem, which it later annexed. Mr. Netanyahu will meet US president Barack Obama at the White House tomorrow.<br/><br/> Israel's March 9 announcement of 1,600 new homes to be built in East Jerusalem triggered rare condemnation from the United States. The US secretary of state Hillary Clinton has said the settlements undermine newly agreed Israeli-Palestinian peace talks.