British and Israeli diplomats reached a last-minute agreement to avoid the closure of the British Consulate in East Jerusalem, Britain’s foreign secretary announced on Thursday.
Israel threatened last month to shut the diplomatic facility, which has served as the center of British outreach to Palestinians for decades, in response to London’s decision to impose economic sanctions on Israeli settlements in the West Bank.
Until Thursday, both countries appeared to be locked in a series of escalating retaliations. British officials had privately warned that the closure of the consulate would be met with retaliation that might include expelling a number of Israeli diplomats from London.
In a statement, the British foreign secretary, Ed Miliband, said that the consulate building would not close but would be renamed.
“Our Consulate General building will not be closing, and will be known as the U.K. Mission, Jerusalem, from today,” Mr. Miliband said. He noted that the new facility “is independent, operational, and will continue to deliver vital services and our work with the Palestinian people.”
Gideon Saar, Israel’s foreign minister, issued a statement asserting that Israel had followed through on its threat because the name of the British Consulate would no longer be seen in East Jerusalem.
“The British Consulate in Jerusalem is ending its operations today,” he wrote on social media. “Accordingly, the sign of the British Consulate in Jerusalem has been removed.”
Mr. Saar said in his statement that British officials had also been removed from an international support center in Gaza and that British officials would no longer be able to train Palestinian Authority forces in the West Bank.
Mr. Saar said in the statement that the British consul general and 19 other diplomats would be ending their assignments. Mr. Miliband said only that a number of British officials who had been stationed at the consulate had been “temporarily withdrawn” to ensure their safety.
The agreement came after Jonathan Powell, Britain’s national security adviser, traveled to Israel last week for meetings aimed at reaching a compromise that could avoid a more serious breakdown between the longstanding allies.
By the time Mr. Powell left Israel, it appeared that the Israelis had rejected his suggestions, according to three people familiar with the private discussions who talked about them on condition of anonymity. But negotiations between Israeli and British officials continued until late Wednesday night, according to one Israeli official who was briefed on the ongoing discussions.
Within minutes of the announcement of the change, the Israeli Foreign Ministry distributed before and after pictures showing the consulate entrance with signs and then without signs by the door.
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