Prime Minister Ehud Olmert said Sunday that Israel would not let the Muslim opposition dictate what sort of activities could be done on Israeli territory in the Old City of Jerusalem.

"[Hamas leader] Khaled Meshal and [Islamic Movement head] Ra'ad Salah cannot tell us what to do 20 meters from the Western Wall. Tomorrow they will also tell us what do at the Jaffa Gate, and after that they'll write what we can do in the Mamila neighborhood. This is our territory and our sovereignty," said Olmert.

According to Olmert, Sheikh Ra'ad Salah was operating out of "belief that if his vision is realized, Israel won't exist as a Jewish and democratic state. He also reiterated that the construction work was being done in coordination with all sources, including the Palestinian wakf and the Jordanian government.

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The cabinet on Sunday approved the continuation of the excavations near the Mugrabi Gate in the Old City of Jerusalem, a government official said, despite protests by Muslims in Israel and across the Arab world.

"The government approved continuation of construction at the approach to the Mugrabi Gate within the proposed framework, at all possible speed," the official said.

Almost all the cabinet ministers supported the continuation of the excavation, excluding Defense Minister Amir Peretz, Education Minister Yuli Tamir, and Minister Ghaleb Majadele, all of whom abstained.

The cabinet agreed that the international condemnation of Israel over the issue would be fielded by the Foreign Ministry in Jerusalem.

The ministers also agreed that the police and the defense establishment would be responsible for intelligence and operations surrounding the excavation, and Minister for Jerusalem Affairs Yaakov Edri would be responsible for coordinating the continuation of the excavation.

The dig was approved two weeks ago as a necessary precursor to replacing a ramp that provides access to the gate. The ramp collapsed three years ago, and was replaced by a temporary structure, but plans have since been approved for a permanent replacement, and by law, any construction work in the Old City must be preceded by a salvage dig.

Prime Minister Ehud Olmert said construction of the ramp would span eight months.

The dig is taking place in the Jewish Quarter, outside the Temple Mount, but the Islamic world has accused it of being meant to undermine the Temple Mount.

Under heavy police guard, workmen returned to the Old City site Sunday, after a 24-hour break for the Sabbath.

Public Security Minister Avi Dichter told the cabinet Sunday that, despite complaints by Defense Minister Amir Peretz, a police representative had advised Peretz of the planned construction work.

According to Dichter, the police head of operations division, Major General Berti Ohayon, presented the plan for the construction work on February 1.

Sources close to Peretz told Israel Radio, however, that the Defense Ministry was left out of the preparations for the construction works.

Also Sunday, Police Commissioner Moshe Karadi instructed the head of investigations division, Major General Yochanan Danino, to examine whether there is grounds for launching a criminal investigation for suspected incitement against the head of the Islamic Movement's northern branch, Sheikh Raed Salah.

Police dispersed an illegal demonstration held by members of the Islamic Movement on Sunday and arrested two protesters near the Dung Gate in the Old City as construction work resumed near the Mugrabi Gate.

Last week, Peretz sent Olmert a letter calling on him to halt construction work, citing public security concerns.

Peretz attached to his request an opinion written by General (res.) Amos Gilad, head of the political-military bureau at the Defense Ministry. Gilad said in the letter that the construction was causing considerable damage and would create foment in the Arab world, particularly at the present time, when Israel is attempting to initiate steps to calm things down with the Palestinians and the Arab world.

But Olmert told the Sunday cabinet meeting that "all works unequivocally take place outside the Temple Mount. [The works reinforce] a dangerous structure in need of renovation and we are responsible for its maintenance."

"It is a pity that radical Muslim elements are trying to overturn the status quo and turn to violence," he added.

Minister for Strategic Affairs Avigdor Lieberman (Yisrael Beitenu) said, "we must continue with the construction works at the Mugrabi Gate in the name of reason, otherwise Israeli sovereignty would be seriously compromised."

Interior Minister Roni Bar-On said "we must not yield to blackmail, threats and pontification, because if we give in protesters will reach the Jaffa Gate, Davidke Square [in central Jerusalem] and ultimately to the Government Compound."

Dichter visited the Western Wall plaza Sunday morning to inspect the construction works, Israel Radio reported. He told the radio that the work will continue despite the violent protests.

"Construction works at the Mugrabi Gate are an unshakeable fact," Dichter told the radio. "They shall be completed, they are not within the Temple Mount compound, and any Muslim familiar with the location understands this is a groundless scandal."

Police spokesman Micky Rosenfeld reported no fresh incidents Sunday morning and said the repair work on the walkway, on the edge of the Temple Mount, was scheduled to proceed throughout the day.

Rosenfeld said police in and around East Jerusalem would stay at an increased strength of around 2,000 officers and restrictions barring men under the age of 45 from praying at the sanctuary's Muslim holy sites would remain in force.

Police say intelligence points to efforts by both Fatah and Hamas to fan the flames in the capital.

Related links
3 Palestinian schools closed as part of Temple Mount safety measures
Digs, lies and the Mugrabi bridge
Arab League blasts Temple Mount dig for 'altering features' of Jerusalem