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.
History of the State of Palestine
The Palestinian National Authority (PNA), the United States, the European Union, and the Arab League, envision the establishment of a State of Palestine to include all or part of the West Bank, the Gaza Strip, and East Jerusalem, living in peace with Israel under a democratically elected and transparent government. The PNA, however, does not claim sovereignty over any territory and therefore is not the government of the State of Palestine proclaimed in 1988.
Referring to "the historical injustice inflicted on the Palestinian Arab people resulting in their dispersion and depriving them of their right to self-determination," the declaration recalled the Treaty of Lausanne (1923) and UN General Assembly Resolution 181 (1947 Partition Plan) as supporting the rights of Palestinians and Palestine. The declaration then proclaims a "State of Palestine on our Palestinian territory with its capital Jerusalem". The borders of the declared State of Palestine were not specified. The population of the state was referred to by the statement: "The State of Palestine is the state of Palestinians wherever they may be". The state was defined as an Arab country by the statement: "The State of Palestine is an Arab state, an integral and indivisible part of the Arab nation". The declaration was accompanied by a PNC call for multilateral negotiations on the basis of UN Security Council Resolution 242. This call was later termed "the Historic Compromise", as it implied acceptance of the "two-state solution", namely that it no longer questioned the legitimacy of the State of Israel. The PNC's political communiqué accompanying the declaration called only for withdrawal from "Arab Jerusalem" and the other "Arab territories occupied." Arafat's statements in Geneva a month later were accepted by the United States as sufficient to remove the ambiguities it saw in the declaration and to fulfill the longheld conditions for open dialogue with the United States.