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Vatican, Israel to sign economic agreement; raises eyebrows

Contrary to the Palestinian concern, a "well informed source" is quoted as saying that "there is nothing in the agreement to harm the rights of the Palestinians," and that the agreement was made with the sovereign State of Israel in its internationally recognised identity, and therefore there was no need for a clarifying preamble.

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The Vatican is about to "indirectly recognise" Israel's annexation of East Jerusalem, seen by many Palestinians as the future capital of their independent state, a media report today said.

This would be done if the draft of an economic agreement between the Jewish state and the Holy See, containing no distinction between sovereign Israel and the territories occupied by it in 1967, is approved by the two sides, Ha'aretz online reported.

The lack of a preamble containing such a distinction is at the center of heightened tension between Palestinian Christian denominations and the Palestine Liberation Organisation (PLO) and the Vatican, it said.

Palestinian sources told the Israeli daily that the agreement would mean "indirect recognition" of Israeli annexation of East Jerusalem and of the imposition of Israeli law in part of the West Bank.

France, which has special standing as custodian of holy Christian sites and Christian communities, is also said to be concerned at the apparent latent recognition of the annexation and the economic implications for the communities, and particularly its Christian institutions in the country and the people who are part of them, the report said.

Contrary to the Palestinian concern, a "well informed source" is quoted as saying that "there is nothing in the agreement to harm the rights of the Palestinians," and that the agreement was made with the sovereign State of Israel in its internationally recognised identity, and therefore there was no need for a clarifying preamble.

The Bilateral Permanent Working Commission between the Holy See and the State of Israel is to meet in Rome today and tomorrow to continue with talks held in Jerusalem last week, addressing matters of disagreement.

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