Sovereignty over the Old City of Jerusalem and its modern Palestinian suburbs, captured by Israel in 1967, is just as much a sine qua non for the Palestinians as "exclusive, undivided sovereignty" over the entire city is for the Israelis. This is why the issue of Jerusalem could wreck the Camp David negotiations. When Mr Yasser Arafat delivered his seminal speech to the UN General Assembly in 1974, he defined the goal of his people's struggle as an independent Palestinian state in Gaza and the West Bank with Arab East Jerusalem as its capital. While he said this goal was no more than a "dream" a quarter of a century ago, Mr Arafat and many ordinary Palestinians now believe that "shared sovereignty" is within their grasp.
Meeting just ahead of the Camp David summit, the 129-member Palestine Central Council, the PLO's mini-parliament, instructed the delegation to hold firm on the extension of Palestinian sovereignty over East Jerusalem.
Yesterday Palestinian newspapers, including the official daily, issued a hardline warning that anyone who conceded "fundamental Palestinian rights" would be seen as a "traitor". Palestinian Jerusalemites demand control over their land and their lives. West Bankers and Gazans insist on the return of their historical administrative, cultural, religious and commercial capital. Furthermore, the issue of Jerusalem resonates far beyond the Jordan.
Arab governments are prepared to settle with Israel if it withdraws from virtually all the territory it occupied in 1967, including East Jerusalem. Their commitment to the city has been formed by struggle and religious attachment. Jerusalem is the holiest place for Arab Christians and the third holiest site for Muslims after Mecca and Medina.
King Fahd of Saudi Arabia, the "Guardian of the Two Holy Sites" (Mecca and Medina), who prevailed upon Mr Arafat to remain at Camp David when talks broke down on Wednesday, insists that Muslim holy places must revert to Muslim sovereignty.
Saudi Arabia would certainly not help finance a multi-billion dollar peace settlement if this does not happen. Indeed, if Mr Arafat yielded on Jerusalem, Arab and Muslim governments could boycott his authority while protests could be expected throughout the Muslim world.