Palestinian Authority negotiator Yasser Abed Rabbo has turned down Defense Minister Ehud Barak's offer that Israel cede "certain neighborhoods" in Jerusalem where a capital for a new Arab state could be located. The Defense Minister made the offer in an interview with Al Jazeera television.

Rabbo stood by the PA demand that Israel cede all of Jerusalem that was occupied by Jordan between 1948 and 1967 as well as all of Judea and Samaria.