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DEFIANT JEWS VOW MORE SETTLEMENTS IN EAST JERUSALEM

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The municipal government and Jewish extremists opposed to Israeli-PLO peace talks plan to settle up to 5,000 more Jews in Arab east Jerusalem, a city council member said Friday.

The settlement plans are part of a campaign by the right-wing city council to block compromise on Jerusalem. Palestinians want the eastern half as capital of their would-be state, while Israel vows the city will remain its undivided capital.Palestinians say Israel's building plans are an attempt to cement control in disputed areas before negotiations over the city's future, expected to begin in two years.

The city intends to build 4,000 to 5,000 apartments for Jews in the Arab sector, and the militants plan to occupy dozens of homes bought in Palestinian neighborhoods, said Abraham Kahilla, a former deputy mayor in charge of planning under former Mayor Teddy Kollek.