41.   Palestinian leader Yasser Arafat said Tuesday the crisis over expansion of Jewish housing in east Jerusalem would not stand in the way of further peace talks with Israel.

42.   Palestinian President Yasser Arafat on Saturday threatened to declare an independent Palestinian state to counter Israeli plans to expand Jewish housing in disputed east Jerusalem.

43.   Since last month the relationship between Israel and the Palestinian Authority has been set back by the unilateral Israeli decision to build Jewish housing in disputed east Jerusalem.

44.   The government is considering several projects to build Jewish housing in the annexed east of the city despite warnings by Palestinian officials that this would spark violence.