ABBAS: OLMERT PROMISED JERUSALEM AS PALI CAPITAL

Abu Mazen: Olmert Agreed to Make Jerusalem Arab Capital (INN)
Palestinian Authority head tells Sec'y Rice that Olmert has agreed to the long-standing Arab demand that eastern Jerusalem be capital of Palestine.

PM: Israel to make heavy concessions (JPost)
Prime Minister Ehud Olmert would be willing to withdraw from a vast amount of territory in the West Bank in return for genuine peace in a final-status agreement with Palestinian Authority President Mahmoud Abbas, Olmert told the Knesset Foreign Affairs and Defense Committee Monday.

Olmert conditioned the withdrawal on the Palestinians keeping all their commitments in the road map, which would be implemented without skipping its stages. The prime minister said this could take time, but his office vigorously denied an Israel Radio report that Olmert said it could take 20 to 30 years.

"I am not talking about withdrawing from all of the territories but rather from specific territories that will be under Palestinian control," Olmert told the committee. "The withdrawal will not take place in a way that will abandon Israeli security. I won't enter the argument of when it will take place but the road map will be part of any agreement."