LONDON, Aug. 20 -- The government of the United Kingdom issued the following news:

TheIsraeli Government's decision to publish construction tenders for the E1 settlement project is unacceptable. The international community has long opposed this settlement expansion, andhas voiced their grave concernsprivately and publicly.The E1 settlementwillunderminetheprospectof thetwo-state solutionby driving a wedge through the West Bankand harming the territorial contiguity of the Palestinian Territories.

International law is clear that Israeli settlements in the West Bank are illegal. This is the position of the international community reaffirmed by the United Nations Security Council.

At a time of grave instability in the West Bankwith unprecedentedlevels of violenceby settlersagainst civilians, and serious restrictions on the Palestinian economy, this decision is even moreconcerning.

We urge the Government of Israel to retract these plansimmediately and end its expansion of settlements in the West Bank. Not only will they take us further from peace, but they further undermine Israel's international standing.

Businessesshould notconsiderbidding for construction tenders.They should be aware oflegal and reputationalconsequencesincluding the risk of involving themselves in serious breaches of international law.

We reiterate our commitment to a comprehensive, just and lasting peace based onthetwo-state solution. We willcontinue toact in its interest.

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