Prime Minister Benjamin Netanyahu and Foreign Minister Avigdor Lieberman have strongly criticized the US for their reticence, the report said.
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But according to Israeli newspaper Haaretz, Clinton urged Israel not to punish Abbas' administration for the bid.
Israeli officials have threatened various punitive actions, including withdrawing Palestinian tax revenues, supporting more settlement building, and canceling past agreements.
Fatah official Abbas Zaki said Sunday that Clinton had successfully persuaded Israel to call off punitive measures.
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