“These activities set back the cause of a negotiated peace,” was the immediate reaction of US Secretary of State Hillary Clinton when the Israeli government authorized the construction of 3,000 new homes in East Jerusalem and the West Bank, following the Palestinians winning bid in the UN General Assembly to become a non-member observer state.  
She did not use the world “illegal”, but Britain’s Foreign Secretary, William Hague, was less inhibited in his condemnation.
"I am extremely concerned by reports that the Israeli cabinet plans to approve the building of 3,000 new housing units in illegal settlements in the West Bank and East Jerusalem. Israeli settlements are illegal under international law... The UK strongly advises the Israeli government to reverse this decision.”
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