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.
East Jerusalem
The Beilin–Abu Mazen agreement of 1995, suggested while Israel would not accept challenges to its political sovereignty over all of Jerusalem it might, with the idea of a "holy basin", theoretically allow Palestinian extraterritorial sovereignty over a part of the East Jerusalem area, with Palestinians directly controlling the Noble Sanctuary, while Jews would obtain religious rights over the Temple Mount. This view, splitting religious and political authority, was unacceptable to Hamas and Arafat soon disowned the idea. At the 2000 Camp David Summit, it was agreed there could be no return to the pre-1967 Jerusalem lines of demarcation; that Israel's unilaterally imposed municipal boundaries were not fixed; that just as Israel's expansion there would be larger than mapped just after 1967, so too the Palestinian expansion would stretch out to take in villages not connected to the city earlier; that Jerusalem would remain a single unified metropolitan unit not divided by an international border, and under the governance of two distinct municipal authorities, with one under full Palestinian sovereignty and serving as the capital of the State of Palestine, exercising full powers in most parts of East Jerusalem. An exchange of neighboruhoods was envisaged, with Israel taking sovereignty over Ma'ale Adumim, Givat Ze'ev and Gush Etzion, while excluding areas earlier included, such as Sur Baher, Beit Hanina and Shu'afat. During the last serious negotiations in 2008 with the government OF Ehud Olmert, Olmert, on 16 September, included a map which foresaw a shared arrangement over Jerusalem, with Israeli settlements remaining in Israel and Palestinian neighbourhoods part of a Palestinian state and constituting their future capital. The "Holy Basin", including the Old City, would be under joint trusteeship overseen by Jordan, Saudi Arabia, Israel, the United States and the state of Palestine. Olmert showed, but would not share, the map with Mahmood Abbas, who was forced to make a copy of it on a napkin.