Israeli offer to Palestine falls short
However, the offer appeared to fall short of Palestinian calls for a full Israeli withdrawal from key areas of the holy city.
The officials spoke as Israeli and Palestinian negotiators began closed talks in Jerusalem to work out a joint document for a US-sponsored peace conference next month.
Ahead of the talks, a confidant of Prime Minister Ehud Olmert said he has proposed in recent talks with Palestinian officials to turn over areas of east Jerusalem to the Palestinians. The Palestinians claim east Jerusalem, which Israel captured in the 1967 Middle East war, as capital of a future independent state.
Deputy Vice Premier Haim Ramon’s proposal marked a potentially significant Israeli concession. Israel has annexed east Jerusalem and claims all of the city as its undivided capital.
But the Israeli transfer would not include the Old City and surrounding neighbourhoods. These are disputed areas, since the Old City contains the holiest site in Judaism — the Temple Mount — and the third holiest site in Islam, the Al Aqsa mosque compound.
Mr Ramon was not clear about what areas would be transferred. But his opposition to relinquishing control of the Old City and neighbouring areas with holy sites — known as the “holy basin” — falls short of Palestinian claims to all areas captured in 1967.




