Israel announces withholding tax transfers to Palestinians despite UN Vote

Israel on Sunday roundly rejected the United Nations' endorsement of an independent state of Palestine, announcing it would withhold more than $100 million collected for the Palestinian government to pay debts to Israeli companies.

It was the second act of reprisal since the UN General Assembly voted overwhelmingly on Thursday to support the Palestinians' statehood initiative. The following day, Israel announced it would start drawing up plans to build thousands of settlement homes, including the first-ever residential developments on a sensitive piece of land near Jerusalem. Actual construction would be years away.

Prime Minister Benjamin Netanyahu declared the statehood campaign, led by Palestinian President Mahmoud Abbas, as "a gross violation of the agreements signed with the state of Israel."

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"Accordingly, the government of Israel rejects the UN General Assembly decision," he said. Israel, backed by the U.S., campaigned against the statehood measure, arguing that only negotiations can deliver a Palestinian state.

Read more about it at CTV News

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Canada recalls diplomats in protest after Palestinians win UN vote

Canada is temporarily recalling its heads of mission to Israel and the West Bank, along with its United Nations representatives in New York and Geneva, to protest the Palestinians' successful bid on Thursday for upgraded status in the UN.

Nine countries voted against the Palestinian Authority's bid to have its status in the UN upgraded to state recognition.(CBC)

Foreign Affairs Minister John Baird pledged to "review the full range of its bilateral relationship" with the Palestinian Authority in the wake of the vote in New York City.

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Canada was one of nine countries, including the U.S. and Israel, to oppose upgrading the UN observer status of the Palestinian Authority from "entity" to "non-member state."

Read more about it at: CBC News
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