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...disputed fate of Jerusalem has long epitomized the stalemate in the Middle East peace process, and over the past two weeks it has been at the center of rare diplomatic brawl between Israel and the U.S. But even as the Obama Administration and the Israeli government square off over demands that Israel refrain from announcing new construction projects in occupied East Jerusalem, the tussle as Israel extends its grip and Palestinians push back is a flashpoint. "The tinder is dry in Jerusalem," says one Western diplomat. "Israeli moves on the ground have been a source of tension, and Palestinian side...

Author: /time Magazine | Title: Is It Too Late to Share Jerusalem? | 3/26/2010 | See Source »

...Jerusalem is just one of a number of difficult "final status" issues to be negotiated in pursuit of a two-state solution - others include where to draw the borders; the fate of settlers and of Palestinian refugees who fled their homes in Israel in 1948 and were barred from returning; security; and water rights. But the fate of the Holy City is easily the most emotive, and perhaps also the most intractable point of conflict. And the very process of trying to restart final-status talks has once again put Jerusalem at ground zero in the conflict. (See pictures...

Author: /time Magazine | Title: Is It Too Late to Share Jerusalem? | 3/26/2010 | See Source »

...between the two sides over what would constitute an acceptable approach to restarting the peace process, and the Israeli leader remained in Washington Wednesday as aides from both sides worked on the issue. The Administration clearly fears that the hard-line position staked out by Netanyahu on Jerusalem jeopardizes any prospect of getting the Palestinians or the wider Arab world to engage with him, rendering any renewed peace effort stillborn. As Olmert pointed out, no peace agreement would be accepted by any Palestinian or Arab leaders that didn't give the Palestinians control of part of Jerusalem...

Author: /time Magazine | Title: Netanyahu Heads Home, Still at Odds with the U.S. | 3/25/2010 | See Source »

...Netanyahu insists that Israel is ready to resume direct negotiations, and blames Palestinian demands for a complete settlement freeze for creating an impasse. But his stance on Jerusalem may have simply reinforced the Palestinian leadership's argument that no deal can be done with the current Israeli government. (Of course, the Israelis might counter that the current Palestinian leadership with which it is being asked to negotiate has questionable political authority over its own people.) Still, the Obama Administration appears inclined to force Netanyahu to make a choice between pursuing a peace process whose contours "everybody knows" - to borrow...

Author: /time Magazine | Title: Netanyahu Heads Home, Still at Odds with the U.S. | 3/25/2010 | See Source »

...Observers sympathetic to Netanyahu paint him as the prisoner of a right-wing coalition in which settlers and other extremist elements are well represented. Making concessions on Jerusalem, the argument goes, would force the collapse of Netanyahu's government. Perhaps, but what that argument ignores is that, if he wants to make concessions for peace, Netanyahu has a willing coalition partner available in the form of the centrist Kadima Party, whose 28 seats make it the largest party in the 120-seat parliament. Together with the 27 held by his own Likud Party and the 13 held by Labor (which...

Author: /time Magazine | Title: Netanyahu Heads Home, Still at Odds with the U.S. | 3/25/2010 | See Source »

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