Activists: Israel to Build in East Jerusalem An anti-settlement group says Israel is moving forward with plans to build a military college on Jerusalem's Mount of Olives, an area claimed by the Palestinians for a future state and steeped in Jewish and Christian religious lore. The Mount of Olives is in east Jerusalem, which was captured by Israel in the 1967 war, along with the West Bank and Gaza Strip. The Palestinians want to form a state in these territories. The Israeli group Peace Now said Saturday that Israel has also given final approval to building some 800 homes for Jews in Jerusalem's Gilo district, another area claimed by the Palestinians. EU foreign affairs chief Catherine Ashton has condemned the planned expansion in the districts.