1 In the escalating fight over Jerusalem, the city's planning committee on Wednesday approved construction of a large Jewish neighborhood in the eastern sector claimed by the Palestinians as a future capital.
2 Angry Palestinian leaders said Israel was violating the Israel-PLO accord by creating facts on the ground before talks on the final status of the disputed city begin next year.
3 'There is no meaning to the peace process,' said Palestinian Information Minister Yasser Abed Rabbo. 'Israel wants to replace the talks by drawing a new map, and we reject this.'
4 The go-ahead for the new Jewish neighborhood of Har Homa came a day before Prime Minister Yithzak Rabin was to meet with PLO chief Yasser Arafat and other Arab leaders in Cairo to try and rescue the Israel-PLO negotiations that have been halted over a deep crisis of confidence.
5 Wednesday's city council decision was likely to further inflame the Palestinians who complain that Israel's land grab in the West Bank and east Jerusalem endangers the negotiations. Last week, Rabin's Cabinet approved more than 3,000 new homes in Jewish West Bank settlements ringing Jerusalem.
6 The Har Homa neighborhood in southeast Jerusalem will have 6,500 homes, with construction likely to begin next month, said Jerusalem city spokesman Hagai Elias.
7 Har Homa will be built on land Israel captured from Jordan in the 1967 Mideast war and then annexed into its capital. Elias said 75 of the 460 acres set aside for the neighborhood were confiscated from Arab landowners.
8 Jerusalem Deputy Mayor Shmuel Meir, a patron of Jewish settler groups, said he hoped the dispute over Jerusalem would eventually torpedo the peace talks.
9 'Today we are in a battle with the Arabs for building in Jerusalem and we must build for Jews in this city,' he said.
10 'I would be thrilled if the (Israel-PLO) talks would collapse, especially over this issue.'
11 The city planning commission approved the construction by a vote of 7-1. Elias said the proposed building plans still had to be reviewed by a regional council, but that this was a formality.
12 Palestinians are not represented in the city government because most don't vote, arguing this would be tantamount to recognizing Israel's annexation.
13 Rabin's government supports the Har Homa project. Rabin has said Israel would never relinquish control over all of Jerusalem, and that there would be no restrictions on construction.
14 Plans for Har Homa were first drawn up in 1991. Construction was delayed when Arab landowners appealed to the Supreme Court which ruled against them in 1994.
15 Once completed, Har Homa would boost east Jerusalem's Jewish population by some 25,000. Since 1967, Israel has built a ring of Jewish suburbs in east Jerusalem, and today Jews narrowly outnumber the 150,000 Arabs in the eastern sector. In all, Jews make up two-thirds of Jerusalem's population of 560,000.
16 In a related development, Palestinians from across the political spectrum launched an anti-settlement campaign Wednesday.
17 The group, headed by Abed Rabbo, called for donations to set up a fund for buying land, planting trees and organizing protests. A first rally was scheduled for Friday near the West Bank settlement of Shilo, Abed Rabbo said.

In the escalating fight over Jerusalem , the city ' s planning committee on Wednesday approved construction of a large Jewish neighborhood in the eastern sector claimed by the Palestinians as a future capital .
in the eastern sector claimed by the Palestinians
Why a neighborhood in this specific area?