UN Secretary-General Ban Ki-moon has deplored the destruction of the Shepherds Hotel in East Jerusalem to make way for new Israeli settlements in the heart of a Palestinian neighbourhood. In a statement received by AIR in Dubai on Tuesday, the spokesperson of UN secretary General has said that demolition only serves to heighten tensions. He deeply regretted that growing international concern at unilateral expansion of illegal Israeli settlements is not being heeded. Such actions seriously prejudice the possibility of a negotiated solution to the Israeli-Palestinian conflict. The Secretary-General again called on the Israeli Government to take steps that are necessary to freeze settlement activity in occupied territory.