Israel seeks clarifications from UK over Jerusalem

Jerusalem, Aug 2 (AFP) Israel today said it has asked Britain to clarify statements by a diplomat who reportedly said his country was financing Palestinian property projects in Jerusalem.

"We have asked the British embassy in Tel Aviv to provide explanations concerning statements made on July 22 to Al-Arabiya television by diplomat Martin Day who is based in Abu Dhabi," foreign ministry spokesman Yigal Palmor said.

According to a transcript of the interview provided by Israel, Day said Britain was funding construction projects in occupied east Jerusalem in a bid to halt Israel's settlement activity.

"We are financing projects aimed at stopping settlement activity," Day reportedly said.

"One of these projects aims at building a new Palestinian neighbourhood in east Jerusalem and at protecting Palestinian homes from being demolished."

He reportedly added that Britain provides "funds to organisations who monitor settlement activity.

'New digger attack' in Jerusalem

Footage of the scene shortly after the incident took place The driver of a construction vehicle in West Jerusalem has been shot dead by police after he rammed a police car. Israeli police say they are treating it as a terrorist attack. It echoes two such incidents in July 2008 involving Palestinian construction workers. Witnesses described the front-end loader speeding along a West Jerusalem road dragging the police car. Tensions are currently very high between Israelis and Palestinians after Israel's military offensive in Gaza. A taxi driver told Israeli radio: "I saw the police car fly into the air. He flipped it over twice, then continued dragging it toward a bus that was stuck in traffic." He said he had fired four shots at the driver, "then a policeman came with his M-16 [automatic rifle] and finished him off". The driver - who has not been identified - was taken to hospital by ambulance and was declared dead on arrival. The incident happened in Malha on the main Begin Highway which connects north and south Jerusalem. There was no immediate claim of responsibility and police said the man was not carrying identification. Earlier attacks In July last year, a Palestinian killed three Israelis and wounded 45 more when he rammed the front-end loader he was driving into buses and cars in Jaffa Street, before being shot dead. Three weeks later 16 people were wounded in a similar incident, and the attacker also killed. In September, a Palestinian driver rammed his car into a crowd of Israeli soldiers, wounding 19 people. He too was shot dead, although relatives denied it had been a deliberate attack. Suicide bomb attacks in Jerusalem by militants from the West Bank have been greatly reduced after reaching a peak in the early 2000s. Recent attacks appear to have been launched mostly by individuals from mainly-Arab East Jerusalem. Earlier on Thursday Israeli warplanes bombed the Gaza Strip, killing two militants, bringing to four the number killed by Israel in less than 24 hours.