UK Mulls Withdrawing Ambassador To Israel

Britain is considering withdrawing its ambassador to Israel over the country's settlement building plans, Sky sources say.

The Government is expected to decide later today how to respond to Israel's plan to allow further settlement building in the controversial E1 area of East Jerusalem.

Sources have told Sky News that the Foreign Office is considering what action to take saying "all options are on the table".

This could include withdrawing the British ambassador to Israel and the suspension of trade agreements.

Israel approved proposals to build 3,000 additional homes last week in a plan that could cut off Palestinians in East Jerusalem from the rest of the West Bank.

Britain's diplomatic threat comes the day after the settlement plans were derided by the head of the United Nations Ban Ki-moon as an "almost fatal blow" to peace hopes.

Any diplomatic action is likely to be taken in concert with other European powers, with France currently playing a crucial role in coordinating joint action.

Sources have said there is "an appetite for action" within the Foreign Office, which could also take the form of "revisiting" the EU's trade agreements with Israel.

The UK could invoke human rights clauses in order to suspend the trade association agreements.

Ambassador Matthew Gould visiting a rocket site in Israel in 2011

Matthew Gould was appointed as Britain's first Jewish ambassador to Israel in September 2010. 

On taking up the post he said: "We come out determined to help build the strongest possible partnership between Britain and Israel, and to help ensure that Britain and Europe do everything they can to help the people of Israel move forward on the difficult path towards peace and lasting security."

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