JERUSALEM/ASUNCION (Reuters) - Israeli Prime Minister Benjamin Netanyahu ordered the closure of Israel’s embassy in Paraguay on Wednesday, hours after the Latin American nation’s new government announced it would move its embassy back to Tel Aviv from Jerusalem.

Israeli Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting at the Prime Minister's office in Jerusalem September 5, 2018. REUTERS/ Ronen Zvulun

Paraguay’s decision was a blow to Israel’s efforts to achieve external recognition of Jerusalem as its capital, which appeared to have gained some traction this year with the United States, Guatemala and Paraguay opening embassies there. Most countries do not recognize Israeli sovereignty over the entire city and say its final status should be set in peace talks.

Paraguay’s foreign minister called Israel’s reaction “disproportionate.” Paraguay President Mario Abdo defended his decision as part of an effort to support “broad, lasting and just peace” among Israelis and Palestinians.

“Paraguay is a country of principles,” Abdo said on Twitter.

Abdo took office last month and belongs to the same conservative party as his predecessor Horacio Cartes, who inaugurated Paraguay’s new embassy in Jerusalem in May.

The Palestinians said their foreign minister, Riyad al-Maliki, met Abdo two weeks ago and hailed Paraguay’s change of mind as “a new Palestinian diplomatic achievement.”

“Minister Maliki exerted a big effort during his meeting with the new president who instructed his foreign minister to arrange the issue,” the Palestinian foreign ministry said in a statement.

Israel acted swiftly after the news broke and a statement in English from the Prime Minister’s office said: “Israel views with utmost gravity the extraordinary decision by Paraguay which will cloud bilateral relations.”

The status of Jerusalem is one of the thorniest obstacles to forging a peace deal between Israel and the Palestinians. Israel regards all of the city, including the eastern sector that it annexed after the 1967 war, as its capital.

But the Palestinians, with broad international backing, want East Jerusalem for the capital of a future state they hope to establish in the occupied West Bank and Gaza Strip. Negotiations between the two sides broke down in 2014.

In December, U.S. President Donald Trump recognized Jerusalem as Israel’s capital, reversing decades of U.S. policy and upsetting the Arab world and Western allies. The United States opened a new embassy in Jerusalem on May 14. Guatemala and then Paraguay opened embassies there afterward.

Netanyahu has attempted to persuade other countries to follow their lead.

On Wednesday while meeting Bulgarian Prime Minister Boyko Borissov, Netanyahu said: “I appreciate your decision to open an honorary consulate in Jerusalem, and I hope, I hope, I hope it’s the first step toward establishing the Bulgarian embassy in Jerusalem.”</s>ASUNCION (Reuters) - Paraguay will move its embassy in Israel back to Tel Aviv, reversing a May decision by former President Horacio Cartes to move the diplomatic site to Jerusalem, the South American country’s foreign minister told reporters on Wednesday.

“Paraguay wants to contribute to an intensification of regional diplomatic efforts to achieve a broad, fair and lasting peace in the Middle East,” Foreign Minister Luis Alberto Castiglioni said.

Cartes had traveled to Israel to inaugurate the new embassy in May. His successor Mario Abdo, also a member of the conservative Colorado party, took office last month.</s>Israel has shut down its embassy in Paraguay after the small Latin American country reversed its decision to move its own embassy from Tel Aviv to Jerusalem,

Paraguay delighted Israel’s government in May by announcing that it was following Donald Trump’s lead and bringing its embassy to Jerusalem, which Israel considers its capital.

But President Mario Abdo, who took power last month, decided on Wednesday that he was reversing his predecessor’s decision and bringing the small embassy back to Jerusalem.

Israel reacted furiously the decision and Benjamin Netanyahu, the Israeli prime minister, immediately announced the closure of Israel’s embassy in Paraguay.

"Israel views with utmost gravity the extraordinary decision by Paraguay which will cloud bilateral relations,” Mr Netanyahu’s office said in a statement.

Paraguay appeared taken aback by the force of Israel’s anger and called the reaction “disproportionate”.

Mr Abdo defended his decision on Twitter, saying it was part of an effort to achieve "broad, lasting and just peace” between Israelis and Palestinians. “Paraguay is a country of principles,” he said.</s>I​sraeli Prime Minister Benjamin Netanyahu, who is also the foreign minister, ordered the closure of Israel's embassy in Paraguay on Wednesday hours after the Latin American nation said it had decided to return its embassy from Jerusalem to Tel Aviv.

The United States and Guatemala also moved their embassies to Jerusalem in May and Netanyahu has attempted to persuade other countries to follow their lead.

"Israel views with great severity the unusual decision by Paraguay that will strain the ties between the countries," a brief statement from the Prime Minister's office said.

"Paraguay wants to contribute to an intensification of regional diplomatic efforts to achieve a broad, fair and lasting peace in the Middle East," Foreign Minister Luis Alberto Castiglioni had said earlier in the day.

Former Paraguayan President Horacio Cartes had traveled to Israel to inaugurate the new embassy in May. He was replaced by Mario Abdo, also a member of the conservative Colorado party, last month.</s>"Paraguay wants to contribute to an intensification of regional diplomatic efforts to achieve a broad, fair and lasting peace in the Middle East," Castiglioni said, according to the Israeli daily Haaretz.

Now, Israel is responding by closing its embassy in Paraguay and recalling its ambassador for consultations, the Israeli Prime Minister's Office said.

The Latin American nation followed in US President Donald Trump's footsteps in May when former Paraguayan President Horacio Cartes decided to relocate the country's embassy to Jerusalem. He was the third foreign leader to do so, following Guatemalan President Jimmy Morales and Trump himself. But Paraguay's move, at least, appears to be short-lived, because after three months, newly elected President Mario Abdo Benitez was more amenable to lobbying from Palestinian Foreign Minister Riyad al-Maliki, who pushed for a reversal.

Cartes even went to Israel for a ceremony for the new Jerusalem embassy in May, which was attended by Israeli Prime Minister Benjamin Netanyahu.

The decision to move the embassy back to Tel Aviv was reportedly made a month ago, not long after the new administration was ushered in. Maliki participated in the inauguration of the new president, but the two nations decided to keep mum about the move so as not to attract pressure on Paraguay from Israel, according to Haaretz.

"The decision is in accordance with international law and [United Nations] Security Council decisions. It's a breakthrough for Palestinian diplomacy vis-à-vis the international community," Maliki said.

Paraguayan media reported that the initial decision to move the embassy to Jerusalem was unpopular in the country. Many world leaders consider the question of whether Jerusalem is an Israeli or a Palestinian city to be in dispute, and the United Nations considers East Jerusalem to be illegally occupied by Israel. The Palestinian Authority maintains that East Jerusalem is its nation's capital.</s>Paraguay will return its embassy in Israel back to Tel Aviv, reversing a contentious decision months ago to move the diplomatic site to Jerusalem.

"Paraguay wants to contribute to an intensification of regional diplomatic efforts to achieve a broad, fair and lasting peace in the Middle East," Foreign Minister Luis Alberto Castiglioni said on Wednesday.

In response, Israel announced it will close its embassy in Paraguay and recall its ambassador, the Haaretz newspaper quoted Prime Minister Benjamin Netanyahu's office as saying.

The Palestinians, meanwhile, will "immediately" open an embassy in Paraguay, Foreign Affairs Minister Riyad al-Maliki said, according to the official news agency Wafa.

Maliki hailed Paraguay's change of mind as "a new Palestinian diplomatic achievement".

Paraguay's former president Horacio Cartes traveled to Jerusalem to inaugurate the embassy in May. But Cartes' successor, Mario Abdo Benitez, also a member of the conservative Colorado party, took office last month and reversed the decision.

In December, US President Donald Trump recognised Jerusalem as Israel's capital, reversing decades of American policy and upsetting the Arab world and Western allies. It opened a new embassy in the city on May 14. Two days later, Guatemala also opened its embassy in Jerusalem.

The decision by the three countries was hailed as a political victory by Israel as it presses other countries to recognise Jerusalem as its capital.

But the relocations drew Palestinian and international anger. Deadly protests in Gaza and the West Bank also took place.

Palestinian leaders see East Jerusalem as the capital of their future state and said Trump's move disqualifies Washington as a peace mediator.

Previous US presidents, as well as nearly every other country, refrained from opening embassies in Jerusalem, saying the city's final status should first be resolved through Israeli-Palestinian negotiations.

Saeb Erekat, secretary-general of the executive committee of the Palestine Liberation Organization (PLO), had condemned the opening of the Paraguayan embassy in Jerusalem.

"We have witnessed today how the Paraguayan president is an irresponsible political leader by defying international law and the achievement of a just and lasting peace in the Middle East," he said.

Netanyahu has attempted to persuade other countries to follow the US' lead.

On Wednesday - while meeting Bulgarian Prime Minister Boyko Borissov - Netanyahu said: "I appreciate your decision to open an honorary consulate in Jerusalem, and I hope, I hope, I hope it's the first step towards establishing the Bulgarian embassy in Jerusalem."</s>Prime Minister Benjamin Netanyahu has ordered the closure of Israel's embassy in Paraguay, his office said, after the South American country announced Wednesday it was moving its mission back to Tel Aviv from Jerusalem.

"The prime minister has asked the foreign ministry to close the Israeli embassy in Paraguay," the statement said, adding that Paraguay's decision had cast a shadow on relations between the two countries.

Paraguay's announcement that it was moving the embassy back to Tel Aviv came little more than three months after it had transferred it to Jerusalem following a similar move by Washington.

US President Donald Trump's deeply controversial move to recognise the disputed city as capital of Israel sparked outrage among Palestinians who see Jerusalem's east as the capital of their future state.

In May, then-president of Paraguay Horacio Cartes met with Netanyahu in Jerusalem after his country and Guatamala opened their embassies there.

His successor President Mario Abdo Benitez, who took office in August, decided to move it back "to contribute to the intensification of regional and international diplomatic efforts that aim to achieve a broad, just and durable peace in the Middle East."</s>Israeli Prime Minister Benjamin Netanyahu ordered the closure of Israel’s embassy in Paraguay on Wednesday, hours after the Latin American nation announced it would move its embassy back to Tel Aviv from Jerusalem.

Israel’s immediate reaction highlights its sensitivity over the status of Jerusalem, which it regards as its capital. Most countries do not recognize Israeli sovereignty over the entire city and say its final status should be set in peace negotiations.

The decision by Paraguay’s new president, Mario Abdo, to move the embassy from Jerusalem back to Tel Aviv reversed the initiative of his predecessor Horacio Cartes, less than four months ago.

The Palestinians said their foreign minister, Riyad al-Maliki, met Abdo two weeks ago and hailed Paraguay’s change of mind as “a new Palestinian diplomatic achievement.”

“Minister Maliki exerted a big effort during his meeting with the new president who instructed his foreign minister to arrange the issue,” the Palestinian foreign ministry said in a statement.

Explaining the new Paraguayan move, the country’s foreign minister, Luis Alberto Castiglioni, said: “Paraguay wants to contribute to an intensification of regional diplomatic efforts to achieve a broad, fair and lasting peace in the Middle East.”

Israel acted swiftly after the news broke and a statement in English from the Prime Minister’s office said: “Israel views with utmost gravity the extraordinary decision by Paraguay which will cloud bilateral relations.”

The status of Jerusalem is one of the thorniest obstacles to forging a peace deal between Israel and the Palestinians.

Israel regards all of the city, including the eastern sector that it annexed after the 1967 war, as its capital.

But the Palestinians, with broad international backing, want East Jerusalem for the capital of a future state they hope to establish in the occupied West Bank and Gaza Strip. Negotiations between the two sides broke down in 2014.

In December, U.S. President Donald Trump recognized Jerusalem as Israel’s capital, reversing decades of U.S. policy and upsetting the Arab world and Western allies. It opened a new embassy in the city on May 14. Two days later, Guatemala opened its embassy in Jerusalem.

The following week, Cartes traveled to Israel to inaugurate the new embassy personally and Paraguay became the third country to set its mission in Jerusalem.

Cartes was replaced by Mario Abdo, also a member of the conservative Colorado party, last month.

Netanyahu, who is also Israel’s foreign minister, has attempted to persuade other countries to follow their lead.

On Wednesday while meeting Bulgarian Prime Minister Boyko Borissov, Netanyahu said: “I appreciate your decision to open an honorary consulate in Jerusalem, and I hope, I hope, I hope it’s the first step toward establishing the Bulgarian embassy in Jerusalem.”</s>Paraguay said on Wednesday it was moving its embassy in Israel back from Jerusalem to Tel Aviv, prompting Prime Minister Benjamin Netanyahu to order the closure of Jewish state's mission in the South American country in retaliation.

Palestinian authorities reacted by deciding to "immediately" open an embassy in Paraguay's capital Asuncion, Foreign Affairs Minister Riyad al-Maliki said, according to the official news agency Wafa.

Paraguay's new President Mario Abdo Benitez, who took office in mid-August, decided to move back the embassy "to contribute to the intensification of regional and international diplomatic efforts that aim to achieve a broad, just and durable peace in the Middle East," his government said.

"Israel views with utmost gravity the extraordinary decision by Paraguay, which will cloud bilateral relations," Netanyahu's office retorted on Twitter.

The original decision to move the embassy from Tel Aviv was taken by Abdo Benitez's predecessor Horacio Cartes shortly after President Donald Trump had announced the United States would relocate its own embassy to Jerusalem.

Cartes even joined Netanyahu in the new embassy's opening ceremony in Jerusalem in May.

Abdo Benitez was already president elect at that point and had questioned the decision, complaining that he had not been consulted.

Announcing the move, his government said it considered the return to Tel Aviv "appropriate," but Netanyahu's office replied that the decision had cast a shadow on relations between the two countries.

Paraguay, though, pointed to a long history of positive relations with Israel.

"I don't think this should annoy our Israeli brothers and friends," said Paraguay's Foreign Minister Luis Castiglioni.

"There are more than 85 countries that have kept their embassies in Tel Aviv and we're historic allies of Israel.

"Don't forget that Paraguay's vote was the decisive vote in the creation of Israel."

In line with most of Latin America, Paraguay was one of the 33 countries that voted in favor -- compared to just 13 against and 10 abstentions -- of the 1947 United Nations two-state partition plan for what was until then British Mandate Palestine.

Castiglioni said Paraguay had always been "predictable in its international relations" but that Cartes's move was "a distortion of this tradition and culture of respect for international law" and UN decrees.

Trump broke with decades of US policy by moving the US embassy to Jerusalem on May 14, infuriating Palestinians and intensifying protests on the Gaza border, with 60 killed in clashes with Israeli forces that day.

His move was followed by Guatemala while the Czech Republic decided to reopen its honorary consulate in Jerusalem as President Milos Zeman voiced his wish to also move its embassy from Tel Aviv.</s>Paraguay's government says it's moving its embassy in Israel out of Jerusalem and back to Tel Aviv, less than four months after opening the new mission.

Foreign Minister Luis Alberto Castiglioni announced Wednesday that the government had decided to take the action immediately.

Former President Horacio Cartes this year made Paraguay only the third country to transfer its embassy to Jerusalem, opening the mission on May 21. But new President Mario Abdo Benitez opposed the shift.

In response to the move, Israel said it was shuttering its embassy in Paraguay, saying ties between the countries would be "strained" by the decision.

The Palestinian Foreign Ministry said Paraguay had pledged to return the embassy two weeks ago during a visit by Foreign Minister Riad al-Malki to the country.
Paraguay announces that it will move its embassy in Israel from Jerusalem to Tel Aviv, reversing a May decision to move it from Tel Aviv to Jerusalem, citing efforts to achieve peace in the Middle East. In response, Israeli Prime Minister Benjamin Netanyahu orders the closure of Israel's embassy in Paraguay.