Actually Israel annexed east Jerusalem not IMMEDIATELY after liberating it in 1967, but 13 years later in August 1980. Furthermore there are more than 220,000 Jews living in that area MORE than the Arab population there. There are no traditionally Arab neighborhoods - the majority of the Arabs in east Jerusalem came AFTER the liberation in 1967.
Jewish teen sustains moderate wounds in stabbing in Jerusalem; assailant shot by police (Haaretz)
from the article: Officials: East Jerusalem construction in de facto freeze