LONDON (Reuters) - Israel must halt settlement expansion, contrary to international law, Britain's defense minister said on Wednesday.

Rapp attacked the Israeli decision to build 304 new housing units on West Bank land and published a statement saying "Israel must stop the expansion of settlements, because this is contrary to international law and leads in practice to annexation of the West Bank."

The statement noted that the Israeli cabinet approved a week ago to build 700 housing units for the Palestinians, and said it was "not enough."

He said Britain remained seriously concerned about the continued demolition of Palestinian property.

On the other hand, Palestinian President Mahmoud Abbas received in his office in Ramallah yesterday, a delegation of Democratic Party members in the US Congress, where Abbas stressed the two-state solution in accordance with the resolutions of international legitimacy and his rejection of the "American dictations and decisions" concerning Jerusalem, refugees, borders and security.