A report on East Jerusalem, State of Palestine and Israel

It is bordered by Jordan and the Dead Sea to the east and by Israel (see Green Line) to the south, west, and north.

The West Bank's borders also include the lands that comprise East Jerusalem.

Alongside the self-governing Gaza Strip, the Israeli-occupied West Bank and East Jerusalem are claimed by the State of Palestine as its sovereign territory, and thus remain a flashpoint of the Israeli–Palestinian conflict.

The city straddles the Green Line between Israel and the West Bank; both Israelis and Palestinians claim Jerusalem as their capital.

Israel controls the entire city and maintains its primary governmental institutions there while the Palestinian National Authority and Palestine Liberation Organization ultimately foresee it as the seat of power for the State of Palestine.

During the 1948 Arab–Israeli War, West Jerusalem was among the areas captured and later annexed by Israel while East Jerusalem, including the Old City, was captured and later annexed by Jordan.

Despite various wars and exoduses, roughly one half of the world's Palestinian population continues to reside in the territory of former British Palestine, now encompassing the West Bank and the Gaza Strip (the Palestinian territories) as well as Israel.

In this combined area,, Palestinians constituted 49 percent of all inhabitants, encompassing the entire population of the Gaza Strip (1.865 million), the majority of the population of the West Bank (approximately 2,785,000 versus some 600,000 Israeli settlers, which includes about 200,000 in East Jerusalem), and almost 21 percent of the population of Israel proper as part of its Arab citizens.

Followed by the PLO's 1988 proclamation of a State of Palestine, these developments served to further reinforce the Palestinian national identity.

The Palestine Liberation Organization (PLO; منظمة التحرير الفلسطينية, Munaẓẓamat at-Taḥrīr al-Filasṭīniyyah) is a Palestinian nationalist political and militant organization founded in 1964 with the initial purpose of establishing Arab unity and statehood over the territory of former Mandatory Palestine, in opposition to the State of Israel.

As the official recognized government of the de jure State of Palestine, it has enjoyed observer status at the United Nations (UN) since 1974.

In 1988, however, the PLO officially endorsed a two-state solution, contingent on terms such as making East Jerusalem capital of the Palestinian state and giving Palestinians the right of return to land occupied by Palestinians prior to 1948, as well as the right to continue armed struggle until the end of "The Zionist Entity."

The Oslo Accords are a pair of agreements between Israel and the Palestine Liberation Organization (PLO): the Oslo I Accord, signed in Washington, D.C., in 1993; and the Oslo II Accord, signed in Taba, Egypt, in 1995.

Bilateral dialogue stems from questions related to the international border between Israel and a future Palestinian state: negotiations for this subject are centred around Israeli settlements, the status of Jerusalem, Israel's maintenance of control over security following the establishment of Palestinian autonomy, and the Palestinian right of return.

While Peres had limited settlement construction at the request of US Secretary of State, Madeleine Albright, Netanyahu continued construction within existing Israeli settlements, and put forward plans for the construction of a new neighborhood, Har Homa, in East Jerusalem.

The Palestinian Authority was formed in 1994, pursuant to the Gaza–Jericho Agreement between the PLO and the government of Israel, and was intended to be a five-year interim body.

East Jerusalem was excluded from the Accords.

The State of Palestine has become recognized by 138 nations and since November 2012, the United Nations voted to recognize the State of Palestine as a non-member UN observer state.

Opposed to the 1948 creation of the State of Israel, he fought alongside the Muslim Brotherhood during the 1948 Arab–Israeli War.

Arafat refused, citing his belief in the need for a Palestinian state with Palestinian leadership.

It called for a Palestinian national authority over every part of "liberated" Palestinian territory, which refers to areas captured by Arab forces in the 1948 Arab–Israeli War (present-day West Bank, East Jerusalem and Gaza Strip).

Israeli-occupied territories are the lands that were captured and occupied by Israel during the Six-Day War of 1967.

Despite the dissolution of the military government, and in line with Egyptian demands, the term Occupied Arab Territories had remained in use, referring to the West Bank (including East Jerusalem, which Israel effectively annexed in 1980), the Gaza Strip, and the Golan Heights.

From 1999 to early 2013, the term "Occupied Palestinian Territory" was used to refer to territories that the interim governing body of the State of Palestine, the Palestinian National Authority (PNA), controlled in the West Bank and the Gaza Strip.

The corpus separatum was one of the main issues of the Lausanne Conference of 1949, besides the borders of Israel and the question of the Palestinian right of return.

The Partition Plan was not implemented, being firstly rejected by Palestinian and other Arab leaders and then overtaken by the 1948 Arab–Israeli War, which left Jerusalem split between Israel (West Jerusalem) and Jordan (East Jerusalem).

Presently, there is generally wide international support for the view that Jerusalem should be a dual capital, with an even split between Israel and the State of Palestine, although exact positions are divided.

The main dispute revolves around the legal status of East Jerusalem and especially the Old City of Jerusalem, while broader agreement exists regarding future Israeli presence in West Jerusalem in accordance with Israel's internationally recognised borders.

The PNA claims all of East Jerusalem, including the Temple Mount, as the capital of the State of Palestine, and claims that West Jerusalem is also subject to final status negotiations, but is willing to consider alternative solutions, such as making Jerusalem an open city.