Israeli offer to Palestine falls short

SENIOR Israeli officials expressed support yesterday for the transfer of Arab parts of Jerusalem to Palestinian control, offering a concession on one of the most contentious issues in the Middle East conflict.

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.