Prime Minister Ehud Olmert and Palestinian Authority Chairman Mahmoud Abbas will meet on Thursday to discuss construction in the Har Homa neighborhood of Jerusalem, according to Haaretz.  The PA has expressed anger over the construction, saying the neighborhood is part of the area that was controlled by Jordan between 1948 and 1967, and that they want it as part of the capital of a PA state.  The PA wishes Israel to expel all Jews from the territory it claims as a PA state.

Israeli officials have argued that the building permits were issued years ago, well before the Annapolis conference and subsequent talks with the PA.  Olmert has said that he was not informed of the decision to continue construction in Har Homa as planned despite PA objections.