Givat HaMatos was named after an airplane that crashed here during the 1967 Six-Day War.<br/> <br />Today, it may be the place where Palestinian hope of establishing a capital in Jerusalem falls apart.<br/> <br />Israeli authorities are releasing plans to build over 2,500 housing units and over 1,000 hotel rooms on the southern fringes of the city .<br/> <br />If the planned settlement goes ahead it would cut off Jerusalem's mainly Arab neighbourhoods from Bethlehem in the occupied West Bank.<br/> <br />That in turn would dash any Palestinian hope of establishing a coherent capital or an independent cohesive state.<br/> <br />Palestinian Khaled Natsheh, who was evicted from his home, says Israelis are stealing Palestinian homes to further Jewish expansion.<br/> <br />(SOUNDBITE) (Arabic) KHALED NATSHEH, PALESTINIAN OWNER OF EVICTED HOUSE, SAYING:<br/> <br />"This neighbourhood had no marks or antiques indicating anything here was Jewish. But the settlers want to put their mark on all the Arab neighbourhoods."<br/> <br />Some 35 percent of Palestinian economic activity is centred on a line that stretches from Bethlehem through East Jerusalem and into Ramallah.<br/> <br />Opponents of Israel's policies say the southern settlements will snap this crucial link.<br/> <br />And as stalled peace talks go nowhere, Israeli settlements are proliferating.<br/> <br />Sarah Sheffer, Reuters
