A simple response

The headline in this paper reads
US, UK condemn latest Israeli plan
for settler housing as 'illegal, illegitimate'
I would feel much better if a Netanyahu government came out with a short and uncomplicated announcement that Jews residing anywhere in the territory between the Mediterranean Sea and the Jordan River, part of the area originally intended to become the Jewish national home as per the internationally legalized recognition of the Jewish people’s historic connection with the Land of Israel, can never be considered as engaged in illegal activity by the actions of residency, construction, farming or other actions. 
And that the sole restriction they face is that
nothing should be done which might prejudice the civil and religious rights of existing non-Jewish communities therein. 
Moreover, the League of Nations also confirmed the right of
close settlement by Jews on the land, including State lands and waste lands not required for public purposes
It should be pointed out that Arab terror predated any alleged "occupation", that the UN 242 resolution didn't mention "Palestine" (which never in history existed as an Arab state) and that, among other things, the sole reason Israel currently administers Judea and Samaria is the result of a defensive war waged against Arab aggression.
It also should be noted that they only reason Jewish communities did not exist in Judea and Samaria when Israel entered the region in June 1967 was the result of an armed violent terror campaign launched by local Arabs beginning in 1920 (and even before) that, during the Mandate period and the 1947-49 war they initiated, ethnically cleansed Jewish life that had existed there for centuries.
A Netanyahu government should also distribute an official translation of the Levy Report which deals with some of the issues.
That would be such a simple way of responding.