Barak sees Israel ceding Arab areas of Jerusalem

09.03.08
Israel News

http://www.ynetnews.com/articles/0,7340,L-3591750,00.html

Some Arab neighborhoods in Jerusalem could become the capital of a future Palestinian state as part of a final peace agreement, Defense Minister Ehud Barak said in an interview broadcast by Al-Jazeera Wednesday.

"We can find a formula under which certain neighborhoods, heavily-populated Arab neighborhoods, could become, in a peace agreement, part of the Palestinian capital that, of course, will include also the neighboring villages around Jerusalem," Barak said. (Reuters)