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Portugal affirms that the expansion of Israeli settlements threatens the establishment of a sustainable Palestinian state, through attempts to separate the West Bank and isolate East Jerusalem, thereby hindering the two-state solution. Portugal also criticizes the occupation policies of economic pressure and the withholding of Palestinian tax revenues, as well as the closing of Christian schools in East Jerusalem, deeming these measures as diminishing the prospects for peace and stability in the region. Portugal has reaffirmed its support for a two-state solution and the establishment of a Palestinian state based on the 1967 borders, with East Jerusalem as its capital.
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