The Palestinians demand that the city - or, symbolically, its largely Arab eastern sector - become their capital.

Jordan has over the years financed and supervised many religious institutions in the eastern Arab sector of Jerusalem.

Specter of the Extremist Both men complain that they are fighting "extremists" who, they assert, are taking over the Jewish and Arab sectors of Israeli society.

Despite the Arab success stories, deep disparities between the Jewish and Arab sectors remain in employment, health, welfare and education.

In East Jerusalem, the predominantly Arab sector of the city, stores and souvenir hawkers observed a total commercial strike, and the streets were deserted.

And he said he favored a reuniting of Jerusalem, rather than restoring the division into Israeli and Arab sectors that existed before 1967.

Mr. Shultz's party had reserved a room for the meeting in the American Colony Hotel in East Jerusalem, the predominantly Arab sector of the city.

This bittersweet comedy, by one of Israel's most respected novelists, keenly observes the disparate Jewish and Arab sectors of Israeli life.

Since the urban master plan projects an equal number of housing units in the Jewish and Arab sectors, no change is expected in the city's demographic balance.

Uproar in Jerusalem The American assertion that Jerusalem's eastern, Arab sector should be treated the same as the West Bank has brought a wave of condemnation from Israelis, including the city's Mayor.