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Source: http://www.ynetnews.com/articles/0,7340,L-3595554,00.html
Israel: Jerusalem Not on Negotiating Table
[Ynet News] Roni Sofer - Diplomatic officials in Jerusalem negated a statement made by U.S. Consul General Jake Walles asserting that Israel had agreed to cede control over eastern Jerusalem to the PA as part of the current peace talks. The sources expressed their astonishment at Walles' public discussion of the negotiations, as the three sides involved have agreed to refrain from making the matter public. Walles told the Palestinian daily Al-Ayyam that during U.S. Secretary of State Condoleezza Rice's most recent visit to Israel, she said the basis for the current negotiations with the Palestinians would have to be a withdrawal to the 1967 ceasefire lines, including eastern Jerusalem. The Prime Minister's Office in Jerusalem issued a statement saying: "We are not negotiating on Jerusalem with the Palestinians....The issue of Jerusalem should be solved by future negotiations, not during current talks." The U.S. State Department also issued a statement: "A senior U.S. official who participated in the discussions denies that the Israeli side...has been willing to negotiate concerning Jerusalem."