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Full Article Follow Reuters Facebook Twitter RSS YouTube Read U.S. Army soldier arrested on suspicion of espionage 01 Nov 2011 Kim Kardashian denies profiting from TV wedding | 01 Nov 2011 Greek PM wins over cabinet, next up Merkel and Sarkozy | 3:29am EDT Zooey Deschanel separates from Death Cab frontman 01 Nov 2011 Loneliness may cause fitful sleep: study 01 Nov 2011 Discussed 158 Insight: U.S. firms to charge smokers, obese more for healthcare 140 Two abortion clinic employees plead guilty to murder 112 Jobless US vets say military experience not valued Watched Stallone stuntman dies on set Mon, Oct 31 2011 Flight from U.S. makes emergency landing Tue, Nov 1 2011 New CPR technique revives man after 63 minutes without pulse Thu, Oct 27 2011 Israel to speed up settlement building in West Bank Tweet Share this Email Print Related News UNESCO grants Palestinians full membership Mon, Oct 31 2011 U.S. stops UNESCO funding over Palestinian vote Mon, Oct 31 2011 Gaza violence simmers after truce announced Sun, Oct 30 2011 Egypt brokers end to Israel-Gaza flare-up: officials Sat, Oct 29 2011 Israel, Egypt carry out U.S.-brokered prisoner swap Thu, Oct 27 2011 Analysis & Opinion The UNESCO meltdown UK soul-searching over its EU membership Related Topics World » United Nations » Israel » A construction site is seen in Gilo, a Jewish settlement that Israel erected on land it captured in the West Bank in a 1967 war and annexed unilaterally as part of its declared capital, Jerusalem September 27, 2011. Israel on Tuesday approved construction of 1,100 homes for Jews on the annexed land in the West Bank, a move that could complicate international efforts to renew peace talks and defuse a crisis over a Palestinian statehood bid at the United Nations. Credit: Reuters/Baz Ratner By Ari Rabinovitch JERUSALEM | Tue Nov 1, 2011 4:51pm EDT JERUSALEM (Reuters) - Israel decided Tuesday to accelerate Jewish settlement building and withhold Palestinian Authority funds, moves likely to further hold up international efforts to revive peace talks. Israel's move came a day after UNESCO awarded the Palestinians full membership of the U.N. cultural agency, a diplomatic victory for the Palestinian Authority in its push for recognition as a state at the United Nations. Israel called the UNESCO decision a "tragedy" and the United States said it would stop its funding of the organization. Israeli Prime Minister Benjamin Netanyahu called for the accelerated construction of some 2,000 housing units, said an official statement released after he convened his cabinet. The Palestinian presidency said the decision to speed up settlement construction on land where the Palestinians aim to found a state amounted to a decision to "speed up the destruction of the peace process." Nabil Abu Rdainah, the spokesman for Palestinian President Mahmoud Abbas, also described as "inhumane" the Israeli decision to temporarily withhold funds collected by Israel on behalf of the Palestinian Authority. A senior Israeli government official said after the cabinet meeting that the decision to halt money transfers to the Palestinians Authority was a temporary measure until a final decision was made. "You can't demand from the Israeli public to continue to show restraint when the Palestinian leadership continues to slam the door in their face," said the official, speaking on condition of anonymity. The statement said the new building will be in "areas that in any future arrangement will remain in Israel's hands." The official said 1,650 of the new tenders are for units in eastern parts of Jerusalem, and the rest are for Efrat and Maale Adumim, Jewish settlements in the occupied West Bank. WITHOLDING FUNDS In the absence of peace talks, which collapsed about a year ago in a dispute over settlement building, Abbas has been seeking statehood recognition from the United Nations. Netanyahu has called to restart peace talks without preconditions, but Abbas says he will return to negotiations only after Israel totally freezes its settlement activity. The Quartet of Middle East peace mediators -- which includes the United States, Russia, European Union and the United Nations -- has been trying to jumpstart the process and said last week both sides had agreed to offer proposals to solve two key sticking points, territory and security. The Palestinians are looking to establish a state in the West Bank, Gaza Strip and East Jerusalem, land Israel seized in the 1967 Middle East War. Israel later annexed East Jerusalem, a move that has not won international recognition. It withdrew from Gaza in 2005, and in 2007 the territory was taken over by Hamas Islamists, who are rivals to Western-backed Abbas and refuse to recognize Israel. It will be the second time this year that Israel has withheld the revenues it collects on behalf of the Palestinian Authority. The revenues, which include duties on goods being imported to the Palestinian territories, amount to around $100 million each month -- half of the PA's domestic revenue base. Israel decided earlier this year to withhold the revenues when Abbas concluded a reconciliation agreement with the Hamas. The freeze imposed temporarily earlier this year resulted in the PA not being able to pay salaries to its 150,000 employees on time for the first time since 2007. The move comes with less than a week to go before Palestinian Muslims mark Eid al-Adha, when families spend more than usual on festivities. (Additional reporting by Tom Perry; Editing by Jon Hemming) World United Nations Israel 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 (40) nikol4h 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 Contact Us Advertise With Us Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use 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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