Move by Jewish settlers sparks unrest

JEWISH settlers with assault rifles slung over their shoulders moved into two buildings in a crowded Arab neighbourhood of Jerusalem yesterday, setting off clashes between Israeli troops and Arab residents.

Palestinians, who claim east Jerusalem as the capital of a future state, said the incident showed Israel was more interested in expanding settlements than in making peace. The settlers said they want to re-establish a Jewish presence in the neighbourhood.

Israel says it will never relinquish the sector of the city it captured from Jordan in the 1967 Mideast war. In recent years, hawkish Jewish groups, with the backing of hardline governments and foreign investors, have bought several properties in east Jerusalem to strengthen Israel's hold there.