Britain could lift the status of the Palestinian representation in the UK, the Government said tonight.
Foreign Office Minister Alistair Burt told MPs the Palestinians had officially requested greater recognition in London after other European countries granted enhanced status.
Mr Burt was answering a written Parliamentary question from Mid Sussex MP Nicholas Soames.
Mr Burt said: "We are aware of the steps some other EU states have taken to upgrade the status of the Palestinian delegations in their capitals.
"The Palestinians have made the same request to the UK, which we are considering in accordance with our long-standing support for Palestinian state building."
But he said any reclassification would not extend to diplomatic immunity and similar privileges, because Britain does not recognise Palestine as a state.
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