Foreign secretary William Hague expresses 'extreme concern', while US state department says actions are counterproductiveBritain and the US have warned that Israel's plans to build new housing settlements in the West Bank would damage the prospect of creating a two-state solution to its conflict with the Palestinians.British foreign secretary, William Hague expressed "extreme concern" at the plan to create 3,000 new homes in the key strategic area of Palestinian territory would seriously undermine the Middle East peace process, and corrode Israel's international reputation.The Israeli announcement on Friday came a day after the UN recognised Palestine as a non-member observer state.