CAIRO, July 8 : Israel's !lousing Minister Ariel Sharon has pledged to settle one mil-lion Jews in and around Jerusalem on lands captured from the Arabs in the 1967 Middle East war, reports Xinhua.

Palestine Liberation Organization leader Yasser Arafat has said that he was prepared for direct negotiations with Israel on the principles of 'territory for peace and recognition of the Palestinians' right to a state, which would be guaranteed by the US, USSR, and the international community, reports Pool.