Looking at it dispassionately, it seems to me it makes sense for Israel to give up east Jerusalem ... of the 1.4 million Arabs living in Israel, approx. 200,000 live is East Jerusalem but do not choose Israeli citizenship, and the Palestinian side agrees that East Jerusalem should become part of their territory. By ceding this, it would give Palestinians a major city of their own (for economic development) and a victory in negotiations, allowing Israel to push for its own interests in other areas - such as a defensible Jordan Valley ...
Australia to spend $64.9 billion on ships, submarines over 20 years (Reuters)
from the article: Will Yair Lapid divide Jerusalem?