BRUSSELS, Dec 7 (Reuters) - U.S. Secretary of State Condoleezza Rice warned Israel on Friday that its plan to build 300 house units on land captured in the 1967 war did not help efforts to reach peace with Palestinians.

"This does not help to build confidence," she said in rare criticism of Israel at a news conference at NATO, where she also met Israeli Foreign Minister Tzipi Livni. (Reporting by Mark John)

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