Two Israeli organisations have hit back at British government claims that they have increased tensions with Palestinians in east Jerusalem and endangered peace efforts.

Foreign Office minister Baroness Anelay appeared to suggest the groups were colonising Palestinian areas "under the guise" of tourism and protecting Jewish historical sites.

The Israel Antiquities Authority organises archaeological excavations around the country and has for years focused on the City of David - an area containing important historical sites - in Jerusalem.

Elad is a right-wing settler group which has a deal with national authorities to control areas of the City of David, including around the Western Wall.

Baroness Anelay said the government was aware of links between the two organisations and was concerned the IAA was supporting "radical settler activities in and around the Old City under the guise of tourism and protection of Jewish history.

"Such actions not only aggravate mounting pressures in East Jerusalem but serve to increase tension around the Temple Mount/Haram al-Sharif and further complicate future attempts to negotiate a political resolution on the city."

Her comments followed a House of Lords question from anti-Israel peer Baroness Tonge about the connections between the two groups.

But Elad's international affairs director Zeev Orenstein said Britain had got it wrong. "Elad has been legally purchasing land in the area for the last 20 years, and in numerous instances, Elad has donated this land for archaeological excavation which serves the public good," he said.

Mr Orenstein said Baroness Anelay's remarks implied "that the British government is advocating a policy that Jews should not be allowed to buy land in Jerusalem, while Arabs, under Israeli law, are free to do so".

An IAA spokesman said that the authority "works according to the
law and is a professional and official scientific body that operates according to known guidelines and transparency".