Britain will retain a reduced diplomatic presence in East Jerusalem under the name UK Mission, Jerusalem, Foreign Secretary Ed Miliband announced on 8 October, as an Israeli deadline to close its consulate expired.

The agreement keeps the building operating, but the two governments described its status differently. Britain said its mission remained independent and operational; Israel said the premises had stopped functioning as a consulate.

In a published statement, Miliband rejected Israel’s authority to order the closure and reiterated Britain’s position that East Jerusalem is occupied territory.

“Our Consulate General building will not be closing,” he said.

Israeli Foreign Minister Gideon Saar said seven diplomats would remain with restricted duties, while 20 would leave, including the consul general, according to the Associated Press. AP reported that Saar presented the restrictions as a response to what he called diplomatic attacks against Israel.

The dispute followed Britain’s announcement of sanctions targeting Israeli settlements in the occupied West Bank, including a ban on trade in goods produced there. Israel subsequently gave Britain 30 days to close the consulate, according to a Reuters/AFP report published by ABC News.

That report said Reuters journalists saw workers remove the consulate’s plaque and a sign identifying its consular section on 8 October. The British flag remained above the building.

The premises in the Sheikh Jarrah neighbourhood have handled British relations with Palestinians in Jerusalem, the West Bank and Gaza, separately from Britain’s embassy in Tel Aviv, which manages relations with Israel’s government, according to the same report. The embassy is unaffected by the closure order.

ABC’s Reuters/AFP report noted that Israel captured East Jerusalem in the 1967 war and later annexed it, a step most countries do not recognise. Israeli settlements are considered illegal under international law, which Israel disputes.

Miliband said Britain had temporarily withdrawn some staff and their families because assurances concerning their security and the protection of the premises were necessary.

He said the government stood by its measures announced on 8 September and intended to rebuild its presence over the coming months. Britain would refrain from reciprocal action while discussions with Israel continued and remained credible, he added.