MAALE ADUMIM, West Bank — Israel’s far-right finance minister said Thursday that a contentious new settlement construction in the Israeli-occupied West Bank is going ahead — a project that Palestinians and rights groups worry will scuttle plans for a Palestinian state by effectively cutting the territory into two parts.

Finance Minister Bezalel Smotrich boasted that the construction, which is expected to get final approval later this month could thwart Palestinian statehood plans. His announcement came as many countries, including Australia , Britain, France, and Canada say they will recognize a Palestinian state in September, at the United Nations General Assembly.

The construction on a tract of land east of Jerusalem named E1 has been has been under consideration for more t

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