Gilo is not in east jerusalem and is not a settlement. Gilo is in the southern end of the city and is a neighborhood of about 8,000 housing units. Unfortunately the American government perhaps because of the lack of a clear policy of the Israeli governmenet in regards to those settlements that are in the heart of the territories, has grouped everything over the green line together. There is no doubt that most people in Israel agree that the dozens of small and medium sized settlements all over the territories and often in direct conflict with neighboring arab villages have to eventually be evacuated and construction has to be stopped there. Most would agree that the settlement blocs have to be treated differently and here there is legitimate disagreement with the americans. I would think that even the left in Israel would agree that the freeze on construction is not relevent to Jerusalem neighborhoods such as Gilo thank you for reading this.
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Preliminary report: Shooting attack in East Jerusalem's Damascus Gate (Haaretz)
from the article: EU, Obama: Settlement construction could threaten peace progress