On August 12, media reports said the Israeli interior ministry would give its final approval to the expansion of two east Jerusalem settlements in the next few days. Two thousand units will be granted to Givat Hamatos and Pisgat Zeev, according to Israeli interior minister Eli Yishai’s spokesperson. The announcement comes at the heels of last week’s announcement to construct 1,600 housing units in Har Homa and Ramot Shlomo, two other east Jerusalem settlements.

The settlement construction drew criticism from Palestinians and internationals alike. On the same day, the Palestinian government released a statement, saying the expansion, "clearly demonstrates Israel’s intentions to conduct their affairs outside the realm of international law and show total disregard for Palestinian rights."

Furthermore, European Union foreign policy chief Catherine Ashton on August 12 said she "regrets" hearing of Eli Yishai's decision about the Ramat Shlomo construction, saying that such moves threaten the two-state solution. Ashton said she, “deeply regrets receiving information of the publicly stated intention of the Israeli government to continue settlement expansion in east Jerusalem," noting that the EU has "repeatedly called on Israel to end all settlement activity." She went on to say that such activity “threatens the viability of a two-state solution.”

The US response was even more watered down. A State Department official said Washington believed “Jerusalem is one of the final-status issues, and therefore the disposition of Jerusalem should be decided by the parties in negotiations.”

The official said “Unilateral actions by the Israelis or Palestinians that appear to prejudice the outcome of the negotiations are counterproductive,” saying this type of construction is “illegitimate and not in the best interest of getting back to negotiations.”

Meanwhile, the aid branch of the US government, USAID has said it would cut all assistance to the Gaza Strip. On August 11, the aid agency said it would have to halt aid to the Strip after Hamas demanded that it audit its books. According to a New York Times report, the State Department said it would halt some $100 million in health care, agriculture, and water infrastructure aid to Gaza.

Hamas, however, denied any crisis. The Hamas de facto minister of foreign affairs and planning in Gaza, Mohammad Awad, said there were no problems with NGOs and assistance agencies like USAID.

Awad said the Hamas run government in Gaza remained committed to working with NGOs in order to "clarify the goals of these organizations to ensure projects are carried out to serve the residents, most of which are humanitarian."

Meanwhile, the Palestinians continue to prepare for the September bid for statehood at the UN. In an interview on August 11 with France 24, Palestinian UN envoy Riyad Mansour said that recognition of an independent Palestinian state would be an investment in peace.

“If there is a global consensus on the two-state solution," he said," then what is the problem with legislating the existence of the state of Palestine?”

"The issue belongs to all the Palestinian people,” he continued. “If the September vote brings peaceful protests in the Palestinian territories, the U.S., Israel, and the rest of the international community should take notice.”

On this note, Palestinians have already said that any demonstrations on September 20 will take place inside Palestinian cities and will not venture into Area C, under Israeli military and administrative control.

President Abbas also tried to counter the many negative statements coming from the US and Israel about the September bid. On August 11, he reiterated the leadership’s position on negotiations, saying that the Palestinians’ “first, second and third choice” is to establish a Palestinian state through negotiations.

Abbas also explained that the UN bid was not a unilateral step, nor would it contradict with the essence of the peace process. “It is not aimed to delegitimize Israel or isolate it, but rather to strengthen the two-state solution,” he said.

Finally, 17-year old Ahmad Saraya from Tubas suffered injuries to his foot after unexploded ordnance detonated while he was shepherding his herd. The ordnance had apparently been left behind by the Israeli army which carries out military exercises in the area. Hospital sources said the boy’s toys had been amputated.