1.  And two days ago, Palestinian leader Yasir Arafat, as he greeted the pope in Bethlehem, called Jerusalem the Palestinian capital.

2.  Before the summit, Barak indicated that he was prepared to allow the Palestinians a foothold in Jerusalem, where Arafat wants to locate a Palestinian capital.

3.  All of East Jerusalem would be the Palestinian capital.

4.  But Arafat does not publicly accept the idea of Abu Dis as the Palestinian capital, since that would imply giving up the fight on Jerusalem.

5.  But Arafat is insisting that a Palestinian capital must include parts of the old walled city in East Jerusalem.

6.  By the time Sharon spoke, a heavy force of Israel armor was already on the move in Ramallah, the unofficial Palestinian capital.

7.  Despite breakthroughs on such questions, some participants in the process are worried that the establishment of a Palestinian capital in east Jerusalem could have some violent consequences.

8.  Despite breakthroughs on such political questions, some participants in the process remain worried that the establishment of a Palestinian capital in east Jerusalem could cause unforeseen problems.

9.  If Israel one day negotiates away a portion of the city to be a Palestinian capital, the United States will build an embassy there, too.

10.  In government circles, Padico is applauded for bringing urgently needed Palestinian capital and business skills back home.