Still, Clinton says an Israeli offer to restrainbut not haltsettlement building represents "positive movement forward."
Clinton spoke after talks Wednesday with Egyptian President Hosni Mubarak during a hastily arranged stopover in Cairo. She came to soothe Arab concerns that Washington is backing off demands for an Israeli settlement halt, sparked when she praised the Israeli plan in Jerusalem on Saturday.
She has since said Israel's stance does not go far enough, but has hinted the Palestinians should resume negotiations without a full settlement halt.