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Slideshow Images of September Follow Reuters Facebook Twitter RSS YouTube Read Exclusive: Study shows $1.2 trillion gap for public pensions 3:01pm EDT U.S. economists win Nobel for applying match-making 4:14pm EDT Obama keeps small lead on Romney, debate bleeding stemmed: poll 3:11pm EDT In second debate, Obama faces challenges on key issues 14 Oct 2012 Supreme Court to weigh Arizona voter registration case 12:27pm EDT Discussed 162 Democrats frustrated by Obama’s ”Big Bird” campaign turn 138 Biden and Ryan in high-stakes election debate 96 Jobless claims fall to lowest in four and a half years Sponsored Links Palestinian status bid jeopardizes peace process: U.S. Tweet Share this Email Print Related News Analysis: Obama, Netanyahu got what they hoped for at U.N. meeting Mon, Oct 1 2012 Netanyahu draws "red line" on Iran's nuclear program Thu, Sep 27 2012 Abbas says to seek upgrade of Palestinian U.N. status Thu, Sep 27 2012 Ahmadinejad denounces "uncivilized Zionists," urges new order Wed, Sep 26 2012 Obama at U.N. calls for end to intolerance, warns Iran Tue, Sep 25 2012 Analysis & Opinion Romneyâ€™s extreme foreign policy makeover Hardline Israeli settlers deface Monastery of Saint Francis in Jerusalem Related Topics World » United Nations » Israel » Middle East Turmoil » By Michelle Nichols UNITED NATIONS | Mon Oct 15, 2012 3:00pm EDT UNITED NATIONS (Reuters) - A Palestinian bid to upgrade its U.N. status to a sovereign country would jeopardize the peace process with Israel and make it difficult to get the two sides to return to talks on a two-state solution, the United States said on Monday. But the diplomatic drive by Palestinian President Mahmoud Abbas received support from Russia and Arab countries at a U.N. Security Council debate on the Middle East situation. Having failed last year to win recognition of full statehood at the United Nations, Abbas said last month he would seek a less-ambitious status upgrade at the world body to make it a "non-member state" like the Vatican. The president of the 193-member U.N. General Assembly, Vuk Jeremic, has said the issue will likely be debated in mid-November, after the U.S. elections. Washington argues a Palestinian state can only be created through direct talks. "Unilateral actions, including initiatives to grant Palestinians non-member state observer status at the United Nations, would only jeopardize the peace process and complicate efforts to return the parties to direct negotiations," the U.S. ambassador to the United Nations, Susan Rice, told the Security Council. There have been no direct Palestinian talks with Israel on peace since 2010, when the Palestinians refused to resume negotiations unless the Israeli government suspended settlement building in occupied West Bank and East Jerusalem. "Any efforts to use international fora to prejudge final status issues that can only be resolved directly by the parties will neither improve the daily lives of Palestinians nor foster the trust essential to make progress towards a two state solution," Rice said. The Palestinians' current U.N. status is an "observer entity." If Abbas wins, that would change to "observer state." JOINING INTERNATIONAL BODIES Being registered as a state rather than an entity would mean the Palestinians could join bodies such as the International Criminal Court and file complaints against Israel for its continued occupation of land it seized in the 1967 war. Egypt's U.N. Ambassador Mootaz Ahmadein Khalil, speaking to the council on behalf of the Arab group of countries, said it fully supported the Palestinians bid. "We expect the General Assembly to adopt a resolution during its current session to upgrade the status of Palestine to become a 'non-member observer state,' as a first step towards reaching full membership," he said. Russia's U.N. Ambassador Vitaly Churkin said: "We believe that the initiative to gain broad international recognition for Palestinian statehood ... complements efforts to achieve a negotiated solution to the conflict with Israel rather than serve as an alternative." "In no case should they be used by Israel to tighten the screws in the occupied territories or exert any other pressure on the Palestinian authority," he said. The Palestinians won admission to the United Nations Educational, Scientific and Cultural Organization in October last year, a move that prompted the United States to cut off funding to the U.N. agency. A 1990s U.S. law prohibits U.S. funding to any U.N. organization that grants full membership to any group that does not have "internationally recognized attributes" of statehood. The law could also prohibit American funding for any other U.N. organization that grants Palestinians full membership status, such as the International Atomic Energy Agency, which among other things monitors Iran's nuclear program. U.N. Secretary-General Ban Ki-moon said last month that the two-state solution was the only sustainable option for peace. But he said the continued growth of Israeli settlements meant that "the door may be closing, for good. The so-called two-state solution involves the creation of a state of Palestine to exist peacefully alongside Israel. (Reporting by Michelle Nichols; Editing by Mohammad Zargham) World United Nations Israel Middle East Turmoil Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (2) oxen wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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