Contradictory public statements by Palestinian Authority (PA) Chairman Mahmoud Abbas and Prime Minister Ehud Olmert have placed the issue of Jerusalem in a cloud of doubt as the two leaders meet on Tuesday for further negotiations. The Prime Minister, facing a threat by coalition partner Shas to bolt the government and possibly lead to its fall, has stated that Abbas agreed not to discuss the proposal that Israel cede eastern Jerusalem. Abbas declared on Monday that all issues will be discussed, and analysts have noted that each leader is posturing for the public, leaving the truth lost in a fog.

In what Reuters News Agency called an "effort to mollify" the Shas party, Housing Minister Zev Boim emphasized there are plans to build another 1,000 units in the Har Homa neighborhood in eastern Jerusalem. Shas has threatened to leave the government if the status of Jerusalem is discussed with the PA.



Foreign Minister Tzipi Livni angrily told Knesset Members Monday she will continue negotiations with the PA despite continuing Kassam rocket attacks. She tried to assure them that she is not playing "Santa Claus or some uncle that is giving out perks."