Israel's ideas, policies, and practices in Jerusalem can all be described and summarized in one sentence; turning the holy city, its land, its population, its history and culture into a Jewish city without Arabs. This "Judaization" began with the emergence of the State of Israel in 1948, which intensified in the wake of the 1967 war and has continued ever since.
It is very important for one to realize that on the ground there exists three separate distinct parts to Jerusalem. The eastern part occupied by Israel in the war of 1967, which had no Jewish population whatsoever before this war. The heart of East Jerusalem (apart from the 'Jewish quarter' which was rebuilt in 1967, and the existence of armed Israeli occupation soldiers) is exclusively Palestinian, over 180,000 Palestinians rooted in their land are living in this part. And the western part which is totally settled by Israelis and has no Palestinian presence.
The United Nations resolutions on Palestine and the Israeli Palestinian conflict, never recognized Israeli control on West Jerusalem, let alone East Jerusalem. In Nov.1995, the UN General Assembly voted overwhelmingly to re-affirm its position on Jerusalem specifically stating that all Israeli imposed legislation on the city, its annexation, and its administrative rules are illegal and considered null and void.
East Jerusalem has been the subject of one of the most ingenious conspiracies in history. In terms of both land and people, the city has witnessed major changes. A zero Jewish population in Arab East Jerusalem in 1967, turned to near majority in 1995. Almost 100 percent Palestinian ownership of the land in 1967 turned to a very small percentage with limited usage in 1995. Arab East Jerusalem where Palestinians are living, is in a state of decay, it is a place where time stood still. Jewish planning and the manipulating of the history of Jerusalem is reducing Arab and Islamic presence in the city to the periphery.
The fate of the city can not and will not be determined unilaterally, the fate of the peace process must be conditional to the Palestinian people regaining full sovereignty on Arab East Jerusalem. Many Israelis, in spite of all their rhetoric on Jerusalem being their 'eternal undivided Jewish capital' are beginning to realize that there has to be a compromise solution on Jerusalem, as history, nature, and life taught us that nothing is eternal, and that a lasting solution will have to be a fair and just solution, in natural terms nothing unfair will last. Effectively, this means a political division of the city and the Palestinian people assuming control, authority, and full sovereignty on their part.
According to the Declaration of Principles signed between the PLO and Israel, a solution for the Palestinian Israeli conflict will be achieved in two stages, the second final stage is to address the permanent status issues and was scheduled to begin in May 1996, which took place but was and is still fruitless. The following issues were on the agenda:
Jerusalem, Israeli settlements, Refugees and their right of return, and The final Borders.
To the Palestinians, a satisfactory solution for Jerusalem must be found, the issue of Jerusalem is a make or break issue. Their claim to Jerusalem is protected on the ground by the people, and by international law supported by UN resolutions, and by international legitimacy recognizing (at least) East Jerusalem as occupied territory, the Israeli acquisition of which was by military force, and annexation was illegal according to United Nations resolutions. To this day, many of the worlds nations do not recognize Jerusalem as an Israeli city, and therefore, do not recognize it as the capital of Israel.