Why must it be under religious sovereignty? This is a recipe for more conflict. It should be a 'corpus seperatum' under UN or international jurisdiction, or joint equal sovereignty between Israel and Palestine, with religious freedom and open access to the holy places -and equal rights for all its citizens.
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Police fire tear gas, detain 200, in Istanbul May Day scuffles (Reuters)
from the article: Would East Jerusalem Arabs rather be citizens of Israel or Palestine?