The PA makes more demands but offers crap in return

Calling the eastern part of Jerusalem the fabricated name, East Jerusalem , misrepresents Jerusalem by insinuating that it is already partitioned, which is what lefty rags like Ha'aretz and its lefty readership wants the international community to think. "East Jerusalem" does not exist as a separate entity from Jerusalem. The entity calling itself Palestine is also not real, and Arabists and Islamists who claim that the entity calling itself Palestine is real, is the root cause of all the problems in the Middle East and around the world. It is kleptocracy in its most basic form. From Ha'aretz:

The Palestinian Authority has demanded that Israel formally sanction a document in which it promises to permit Palestinian institutions in East Jerusalem to continue to operate, the Shin Bet security service has told the government in recent days. The document, known as the "Peres letter," was appended to the Oslo II agreements of 1993. The Shin Bet - which is presenting its analysis of the negotiating stance the Palestinians are expected to put forward at next month's Annapolis peace conference - has also warned Prime Minister Ehud Olmert against falling into the trap of declaring Israeli recognition of East Jerusalem as the capital of a future Palestinian state.

The warning points especially to the fact that "East Jerusalem" is understood to encompass the Old City and the Western Wall, both.