OCCUPIED JERUSALEM/RAMALLAH (Reuters) - Israel's main opposition party said on Monday the government has quietly frozen approval of Jewish housing projects in East Jerusalem in a bid to heal a rift with Washington and coax the Palestinians into peace talks. "I am talking about a fact. I checked it out. All of the work of the Jerusalem district planning committee has been frozen completely, except for the veteran neighbourhoods," legislator Roni Bar-On of the centrist Kadima Party said in parliament. He said he was using the term "veteran neighbourhoods" to refer to areas of Jerusalem that were under Israel's control before it occupied the eastern part of the city, along with the West Bank and Gaza Strip, in a 1967 war. "Why don't you tell us the whole truth, Mr Prime Minister," Bar-On asked, calling a de facto freeze the right move to make to narrow differences with Washington over settlements and get peace talks, suspended since December 2008, under way.