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Source: http://www.haaretz.com/hasen/spages/919372.html
Palestinians Seek to Renew Institutional Activities in East Jerusalem
[Ha'aretz] Aluf Benn - The Palestinian Authority has demanded that Israel formally sanction a document in which it promises to permit Palestinian institutions in East Jerusalem to continue to operate, the Shin Bet security service has told the government in recent days. The Shin Bet - which is presenting its analysis of the negotiating stance the Palestinians are expected to put forward at next month's Annapolis peace conference - has also warned Prime Minister Olmert against falling into the trap of declaring Israeli recognition of East Jerusalem as the capital of a future Palestinian state. The warning points especially to the fact that "East Jerusalem" is understood to encompass both the Old City and the Western Wall.