Now that the GOI has stated that it recognizes the eventuality of a Palestinian state, it should also state explicitly that it recognizes thast some part of Jerusalem will become part of that state. It should say that it's policy is that Israel can and will build anywhere in Jerusalem where there is already a significant Israeli population (such as Ramat Shlomo), but that it will not take any more land in the eastern part of the city where there is already a large Palestinian population. Israeli expansion of Jerusalem should be to the west and south. At the same time, the GOI should state unequivocally that, while it will protect the right of everyone to have access to the Temple Mount for religious purposes, it has not the slightest intention of ever giving up Israel's sovereignty over the Temple Mount. For the Palestinians to demand that that be part of a negotiation is to say that they are not really interested in a genuine negotiation aimed at producing a Palestinian state.
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from the article: Netanyahu faces a U.S. adamant about East Jerusalem