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.
Millennium Summit
Israeli Prime Minister Ehud Barak called for Yaser Arafat, the Palestinian leader, to reach an agreement with him. During the summit, Barak stated:
"The opportunity for peace in the Middle East is now at hand and must not be missed. Jerusalem, the eternal capital of Israel, now calls for a peace of honour, of courage and of brotherhood. We recognise that Jerusalem is also sacred to Muslims and Christians around the world and cherished by our Palestinian neighbours. A true peace will reflect all these bonds."
Yaser Arafat responded to Ehud Barak's comments by saying the Palestinians have already contributed to the peace efforts by making significant sacrifices towards a compromise between the two countries.