NEW : Veto ` ` encourages further Israeli intransigence , '' observer of Palestine says . The veto is the first to be used by the U.S. under the Obama administration . U.S . Since the breakdown of American-brokered talks with Israel in September over the issue of settlements , the Palestinian Authority has been pursuing a policy aimed at unilaterally declaring a Palestinian state by September based on borders from 1967 and in recent months has won recognition from a number of South American countries . Secretary of State John Kerry said he would use it if Israel did not comply with U.N. resolutions on Palestinian statehood and end settlement building in occupied territories. It 's unwise for Security Council to try to resolve key divisive issue . The Palestinian proposal aimed to declare Israeli settlements in the West Bank illegal .
NEW : Veto ` ` encourages further Israeli intransigence , '' observer of Palestine says . The veto is the first to be used by the U.S. under the Obama administration . U.S . Secretary of State John Kerry said he would use it if Israel did not comply with U.N. resolutions on Palestinian statehood and end settlement building in occupied territories. It 's unwise for Security Council to try to resolve key divisive issue . The Palestinian proposal aimed to declare Israeli settlements in the West Bank illegal .