UNSC 365 did not put out the text as you quoted. It merely endorsed (note, not mandated) UNGA Resolution 2312 and urged all parties to implement it. It actually dealt with issues of Cyprus, not Israel or Palestine. The text that you quoted is probably from somewhere else.
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Preliminary report: Stabbing attack in Jerusalem near Damascus Gate (Haaretz)
from the article: Lieberman: U.S. demand to end East Jerusalem building is 'unreasonable'