British Foreign Secretary Ed Miliband said the UK government “will not accept the continued displacement of Palestinians” or “the unlawful occupation that persists,” adding: “We will not be bystanders in the destruction of the two-state solution.”
Miliband made the remarks in a warning to British businesses not to bid for construction tenders in the E1 area between Jerusalem and the Ma’ale Adumim settlement, on the final day for submitting bids, Oct. 19.
Warning of “legal consequences”
Miliband urged British firms not to bid for E1 tenders, warning of “legal and reputational consequences, including the risk of involving themselves in serious breaches of international law.” He called the Israeli government’s tender decision “a direct threat to the prospect of a two-state solution.”
Last month, the Jerusalem District Court allowed a tender for 1,234 homes in E1 to proceed without ruling on the legality of the construction plans. After the bidding deadline, proposals must be reviewed, winners selected and building permits obtained before work can begin.

Ban on settlement goods
Miliband said the UK has “created new powers allowing us to sanction individuals and companies” involved in building illegal settlements, and that the government is committed to legislation banning goods imported from illegal settlements and to action on services that finance or facilitate them. “The British people do not want to be supporting the construction of illegal settlements,” he said.
E1 is among the most contested construction areas in the West Bank. Many Western governments and campaign groups fear the project, which would split the northern West Bank from the south and cut East Jerusalem off from its Palestinian hinterland, could kill the prospects of a peace deal.
Miliband also condemned escalating settler violence, including recent attacks on officials from France, Belgium and Poland, a Catholic Church representative and a U.S. journalist. Britain announced sanctions related to E1 in September and has deemed Israel’s continued occupation of Palestinian territory unlawful.