Article V of the DOP states that “permanent status negotiations will commence as soon as possible, but not later than the beginning of the third year of the interim period ... these negotiations shall cover remaining issues, including: Jerusalem, refugees, settlements, security arrangements, borders, ...” The Israeli government pretends that the words “as soon as possible” do not appear. It has repeatedly asserted that even the raising of the Jerusalem issue by the Palestinians is a blatant breach of the agreement. It has threatened sanctions against Palestinian national institutions which take action to protect Palestinian rights in Jerusalem, and has refused to discuss even basic issues of human rights in the city. On the other hand, Israel has interpreted Article V as a carte blanche to continue its settlement activities, house demolitions, and other human rights violations in the city. 
Local peace and human rights activists are seriously concerned about the fact that the PLO leadership seems intimidated by the Israeli threats, has refrained from actively coordinating existing initiatives, and abstained from popular mobilization. Thus the first big demonstration for “Jerusalem the Capital of Two States”, organized jointly by PLO activists, the Orient House, and the Israeli Peace Bloc, was canceled in the last moment upon a request by the Orient House. Independent peace activists and human rights organizations have criticized the lack of consultation by the PLO headquarters and the patronizing approach to their year-long efforts. Current developments, such as the proposed establishment of another legal aid center for Palestinian Jerusalemites headed by Faisal Husseini, provide little basis for optimism. A new Committee for the Defense of Arab Jerusalem, combining all political factions in the PLO, will still have to prove its ability to efficiently raise the issue. 

Palestinian and Israeli NGOs, on the other hand, continue to have some piecemeal success on human rights issues in Jerusalem. However, without efficient coordination on the political level, they will remain unable to achieve more than small reforms - on a case by case basis - of some of the most urgent problems of Palestinian residents in the city.