Britain warning over Israeli settlement expansion

The British Foreign Office said on Monday it was considering a \"strong reaction\" to Israel\'s plans to build new settler homes, amid speculation it could recall its ambassador to Israel. A diplomatic source said media reports about its ambassador were speculation and no decision has been taken, but it is thought to be an option. \"The Foreign Secretary (William Hague) has consistently made it very clear that settlement building, such as the recent Israeli government decision to build 3,000 new housing units, threatens the two-state solution and makes progress through negotiations harder to achieve,\" a Foreign Office spokesman said. \"We have called on the Israeli government to reconsider. We have told the Israeli government that if they go ahead with their decision, then there will be a strong reaction.\" Reports of a decision by Israel to build the homes in east Jerusalem and the West Bank emerged Friday, with an official source confirming it was in retaliation for the Palestinians winning the rank of a UN non-member state a day earlier.