US consul's says Israel had agreed to cede east Jerusalem

PM's Office irked by US consul's interview with Palestinian paper in which he said State had agreed to cede east Jerusalem in current talks; officials in Israel, Washington issue statements denying capital is being negotiated.
Diplomatic officials in Jerusalem negated a statement made by the capital's US Consul General Jake Walles asserting that Israel had agreed to cede control over east Jerusalem to the Palestinian Authority as part of the current peace talks.
The sources expressed their astonishment at Walles' public discussion of the negotiations, as the three sides involved have agreed to refrain from making the matter public.