By Alexander Cornwell
TEL AVIV, Oct 6 (Reuters) - Britain is considering expelling Israeli diplomats if Israel carries out its order to shut the British consulate in East Jerusalem this week in a dispute over sanctions targeting Israeli settlements, four sources said.
Israel on September 8 ordered Britain to close the East Jerusalem consulate within 30 days and remove its diplomats from the city, after Britain said it would impose a ban on trade of goods made in Israeli settlements in the occupied West Bank.
The 30-day deadline for Britain to close the consulate ends on Thursday, which will impact around 30 British diplomats who work there, along with their family members, the sources said.
Britain is considering expelling Israeli diplomats from Israel's embassy in London in response to any closure of the consulate, the sources said, speaking on condition of anonymity.
It would be a highly unusual step for allies to expel each other’s diplomats. Despite the current strains, the UK and Israel are close economic, security and intelligence partners.
The British Foreign Office and the Israeli Foreign Ministry declined to comment. An Israeli official said any action against Israel would be met with a response.
UK HOPES CLOSURE CAN STILL BE AVERTED, SAYS SOURCE
A fifth source, also speaking on condition of anonymity, said Britain was still hopeful that an agreement could be reached to prevent the consulate from closing. If it did close, the source added, London was not expected to take any action until after Israel's October 27 election, if at all.
After Britain announced the sanctions, Israeli Foreign Minister Gideon Saar accused London of interfering in this month's election. A spokesperson for Saar told Reuters on Monday the consulate would close on Thursday.
The British sanctions announcement, and Israel's response, mark a new low in the relationship between the once steadfast allies. Britain has repeatedly criticised Israel over its actions in the war in Gaza and over Israeli settler attacks on Palestinians. Israel's government has accused Britain's governing Labour Party of being hostile towards Israel.
The British consulate, in the Sheikh Jarrah neighbourhood of East Jerusalem, handles the country's relations with Palestinians in the city as well as in the West Bank and Gaza. It also provides consular services to Palestinians.
The consulate has been in Jerusalem for almost 200 years, long before the State of Israel was established in 1948.
Reuters reported on Monday that Britain's top national security adviser, Jonathan Powell, had quietly visited Israel last week in an attempt to keep the consulate open but failed to reach an agreement.
Two other sources said that Britain has asked European countries to raise the issue with Israel in hope of convincing the government to reverse its decision.
TWO-STATE SOLUTION
In announcing the sanctions, Britain said that Israel's actions were undermining the possibility of a two-state solution — the idea of a Palestinian state co-existing peacefully alongside Israel. Prime Minister Benjamin Netanyahu's government openly rejects the idea of Palestinian statehood.
Britain, which recognised the State of Palestine last year, cited Israeli government-backed projects to expand settlements and rising settler attacks targeting Palestinians in the West Bank. The British sanctions are to take effect next year.
France and Canada joined in announcing sanctions. Israel has not taken action against Paris or Ottawa.
The incident highlighted growing frustration among Israel's longtime allies over its settlements in the occupied West Bank, territory Israel captured in a 1967 war. Nearly all countries and all UN bodies view the settlements as illegal under international law, which Israel disputes.
(Reporting by Alexander Cornwell; Editing by Peter Graff and Gareth Jones)
