East Jerusalem
In the Palestine Liberation Organization (PLO)'s Palestinian Declaration of Independence of 1988, Jerusalem is stated to be the capital of the State of Palestine. In 2000, the Palestinian Authority passed a law proclaiming Jerusalem as its capital, and in October 2002, this law was approved by chairman Yasser Arafat. Since that time Israel has shut down all offices and NGO organisations connected to the PLO in East Jerusalem, saying that the Oslo Accords do not permit the Palestinian National Authority to operate in Jerusalem. The Organisation of Islamic Cooperation (OIC) recognised East Jerusalem as capital of the State of Palestine on 13 December 2017.
2001 Israeli prime ministerial election
In the Fall of 2000, talks were held at Camp David to reach a "final status" agreement on the Israeli-Palestinian conflict. The summit collapsed after Yasser Arafat would not accept a proposal drafted by American and Israeli negotiators. Barak was prepared to offer the entire Gaza Strip, a Palestinian capital in a part of East Jerusalem, 73% of the West Bank (excluding eastern Jerusalem) raising to 90-94% after 10–25 years, and financial reparations for Palestinian refugees for peace. Israel would therefore have gained an additional 6-10% of the West Bank, including more of East Jerusalem than previously held, and Palestinian leaders would have had to give up the Right of Return. Arafat turned down the offer without making a counter-offer.