ATLANTA (Reuters) – Former US President Jimmy Carter called yesterday for direct talks between Israel and Palestinians toward a two-state Middle East solution, but said it would take a dramatic shift in Israeli policy.

Carter, who presided over the 1978 Camp David Accords that paved the way for peace between Israel and Egypt, has bluntly criticized successive Israeli governments in the past and has frequently been at odds with US government policy.

In a speech at the Carter Center he condemned as “very embarrassing” Israel’s announcement last week during a visit by US Vice President Joe Biden that 1,600 more homes would be built for Jewish settlers near East Jerusalem.