1.  Palestinians hope to make eastern sectors that are majority Arab part of the capital of an independent state.

2.  Palestinians want control of the Arab parts of the city, so they can make it the capital of a new Palestinian state.

3.  Palestinians say the planned construction is part of an Israeli strategy to cut off Arab parts of Jerusalem from the West Bank.

4.  Palestinians fear the step will lead to the annexation of West Bank land and the cutting off of Arab parts of Jerusalem from other Palestinian areas.

5.  A politically explosive Jewish housing development in a traditionally Arab part of Jerusalem has run into financial problems that threaten to scuttle the project.

6.  According to the agreements, Israel was to have pulled its troops from the Arab parts of Hebron already in March.

7.  But Israel has aroused Palestinian anger by announcing plans to build a Jewish neighborhood in disputed East Jerusalem, a mainly Arab part of the city claimed by Israel.

8.  Construction will begin within weeks on a Jewish neighborhood on land between Arab parts of Jerusalem and surrounding Palestinian villages, Jerusalem Mayor Ehud Olmert said Sunday.

9.  Hours later, rioting throughout traditionally Arab parts of Jerusalem continued, with masked Palestinians throwing stones at cars and blocking roads with burning tires.

10.  Israel says the city never again will be divided and has ringed the Arab part of the city with Jewish neighborhoods.