As the Obama administration relaunches direct Israeli-Palestinian peace talks, the BBC's Paul Reynolds outlines where the three parties stand on the core issues of the conflict. Middle East talks: Core issues Jerusalem Israel The Israeli government is unwilling to divide Jerusalem, held to be the political and religious centre of the Jewish people. It stands by the 1980 basic Israeli law that "Jerusalem, complete and united, is the capital of Israel". In the past there has been room for manoeuvre on the margins. In talks in 2000 and 2007, the then Israeli governments proposed exchanging some outlying annexed districts. Palestinians The Palestinians want East Jerusalem, which was controlled...
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