On June 21, 1998, the Israeli Cabinet adopted a plan to strengthen Jerusalem and ensure its unity while countering the PLO's effort to divide the city. The decision is entirely consistent with the peace process and in no way violates the Oslo Accords, changes the status quo of the West Bank or the status of the Palestinians in the city or territories.
This plan is dedicated entirely to maintaining the demographic balance in Jerusalem between Arabs and Jews to ensure a united Jerusalem as Israel's capital, improve municipal services within the Jerusalem metropolitan area and boost the city's economy. Nothing in this decision will adversely affect the Arab population of Jerusalem, which is rapidly increasing while the Jewish population is declining.
More specifically, the plan aims to:
The plan does not:
Under this plan, Israel will not be violating any agreements with the Palestinians. Oslo does not restrict Israel's activities within Jerusalem and nothing in this decision will adversely affect the lives of the city's Arab population.
Sources: Israel Ministry of Foreign Affairs