the negotiated boundaries (not necessarily a division of the city) are established - it's a technical international matter, and not a religious or political undertaking at this time since the issue of Jerusalem has never been resolved from an international perspective, but rather only unilaterally from an Israeli/Jewish perspective by the Knesset. When there is consensus by most nations, and even if not, but certainly the expectation has been raised for decades by most countries and significant Jewish organizations, that East Jerusalem would represent the Palestinian capital. The details of Jewish presence within East Jerusalem is within these discussions. There's no reason to create a greater dilemma than actually bringing the items to the table.
Rocket alarm sirens sound in southern Israel (Haaretz)
from the article: The U.S. will no longer turn a blind eye to Israeli settlements