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

Nowhere has the new military control been more stringent than here, the Palestinian financial capital, which Israeli officials now call the center of Palestinian terrorism.

Palestinians fear this would preclude any chance of establishing a future Palestinian capital in the greater Jerusalem area.

It also promised a new charter to come, which delegates said would include principles from the "declaration of independence," including a claim to Jerusalem as the Palestinian capital.

Last week that proportion shrank to one-fifth, and 92 percent said peace was impossible if East Jerusalem did not become the Palestinian capital.

He said the strike should serve as a warning "that the situation is dangerous," and said its rallying cry would be Jerusalem as the Palestinian capital.

Formulas are being explored that would expand the territory of greater Jerusalem so that some area outside the present city limits might become a Palestinian administrative capital.

All it meant, Palestinian officials said, was that the struggle to achieve a Palestinian capital in Jerusalem was 70 times greater than efforts anywhere else.

Intended for negotiation is the prospect of a Palestinian capital in East Jerusalem.

Others have ventured further, suggesting a new Palestinian capital that would lie inside metropolitan Jerusalem but outside present city limits.