Britain, France, Germany and Italy demand Israel withdraw the 1,234-home tender; Smotrich rejects ‘dictates’ and sanctions threatsThe four countries added: "The international community has long opposed this settlement expansion, and has voiced its grave concerns privately and publicly. The E1 settlement will undermine the prospect of the two-state solution by driving a wedge through the West Bank and harming the territorial contiguity of the Palestinian Territories. International law is clear that Israeli settlements in the West Bank are illegal."GallerySmotrich and Miliband (Photo: Leon Neal/Pool via REUTERS, Ronen Zvulun/REUTERS)"At a time of grave instability in the West Bank with unprecedented levels of violence by settlers against civilians, and serious restrictions on the Palestinian economy, this decision is even more concerning," they said. "We urge the Government of Israel to retract these plans immediately 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."Meanwhile, Finance Minister and Religious Zionism chairman Bezalel Smotrich responded Thursday to the strong condemnation issued by British Foreign Secretary Edward Miliband over the construction tender for the disputed area between Jerusalem and Ma'ale Adumim."The British Mandate in Palestine is over. We will not accept dictates from foreign countries," Smotrich said during a ceremony marking the renewed establishment of the evacuated settlement of Kadim in the northern West Bank, which was evacuated during the 2005 disengagement 21 years ago."I heard the British foreign secretary's condemnation of my decision to eliminate the idea of a Palestinian state and connect Jerusalem, our eternal capital, with Ma'ale Adumim through the E1 area — something my predecessors did not dare to do," Smotrich added. "I refuse to be impressed or intimidated by threats of sanctions. We do not accept dictates from foreign countries. We are doing what is good and right for the State of Israel."E1 area (Photo: AHMAD GHARABLI / AFP)Smotrich called on Gadi Eisenkot, chairman of the Yachad! (Together!) party, to clarify his position on the establishment of a Palestinian state."You aspire to be prime minister of Israel. Are you prepared to unequivocally condemn the blatant and brazen interference by foreign governments?" the finance minister asked. "Are you prepared to commit that you will not halt the E1 construction plans? Are you prepared to commit that the communities and farms we are establishing in the West Bank will remain in place under your government?"Earlier Thursday, Britain's new foreign secretary, Ed Miliband, said: "This is unacceptable, destructive and puts the two-state solution at risk." He also summoned Israel's chargé d'affaires in Britain, Christian Kantor, for a reprimand.Miliband said the E1 project, considered one of the most politically sensitive because of its strategic location, "would strike at the heart of Palestine and risk severing the West Bank from East Jerusalem, potentially jeopardizing the viability of a two-state solution.""Britain has been clear, both privately and publicly, in its opposition to the project and in its support for a two-state solution as the only way to ensure long-term security and peace for both Palestinians and Israelis," the British minister said, exactly one month after taking office. "All settlements undermine this prospect and constitute a flagrant violation of international law."Miliband said he had made clear to Foreign Minister Gideon Sa'ar that the government must "immediately halt the E1 plans, withdraw the tender and stop all settlement expansion."He added: "The Israeli representative was summoned to the Foreign Office, where we made clear Britain's deep opposition to this step by the Netanyahu government and demanded an immediate change. The impact of settler violence and terrorism has been catastrophic for Palestinian communities. Settlement expansion and attempts to create irreversible divisions on the ground threaten peace, security and the prospects for a viable Palestinian state."The British foreign secretary added: "Britain will not stand by and accept the destruction of the two-state solution. In the coming weeks, we will set out a comprehensive package of measures in response to the policies of the Israeli government, to protect the viability of a Palestinian state, target sanctions at those involved in illegal settlement expansion and support a just and lasting peace for Israelis and Palestinians."The new construction tender, with a submission deadline of Oct. 19, about a week before the election, sparked an uproar in Europe Wednesday night.A European diplomat said: "Israel explicitly promised its friends on the continent that there would be no progress on construction in E1. This therefore crosses a red line and is a very bad development."The diplomat also warned that, from the perspective of European countries, advancing construction in E1 could justify a significant shift in policy toward Israel."This is a very serious matter, especially when it involves an explicit promise made to various countries," he said. "It seems Netanyahu is doing everything he can to destroy Israel's foreign relations and lose the last of your friends."