Cost may delay Israel embassy move

The government is expected to formally recognise Jerusalem as Israel’s capital but may delay embassy relocation.

A view of Jerusalem from the Mount of Olives. Picture: AFP

The Morrison government is expect­ed to formally recognise Jerusalem as Israel’s legitimate capital following a cabinet meeting today, but may delay the ­relocation of Australia’s embassy from Tel Aviv.

Senior government sources have confirmed a final decision was made by cabinet’s national securi­ty committee last night.

It is believed the option favoured by several cabinet ministers was a formal recognition of Jerusalem and a commitment to move the embassy at a later stage.

The decision will be ratified by cabinet today but is unlikely to be announced before tomorrow’s Council of Australian Governments meeting.

Sources confirmed that it was likely a consular office would be established in Jerusalem as a sign of support for Israel until the full embassy was relocated.

It is believed to have been discussed in length at last night’s meeting. A formal recognition could involve an executive order.

What is unclear is if it will recog­nise West Jerusalem as the capital, or a broader definition which recognised Jerusalem but without prejudice to future ­borders set in any peace deal between Israel and the Palestinians. This is regarded as an important distinction, as any future border is likely to involve land swaps.

Ministers were tight-lipped about where cabinet would land on the issue.

The formal recognition of Jerusalem would be a first step in a potenti­al move of the embassy.

US President Donald Trump announced last year that the US embassy would be moved from Tel Aviv to Jerusalem. Guatemala soon followed suit. Paraguay has signalled it will also make the move.

Russia formally recognised West Jerusalem as the capital of Israe­l last year. Most UN member countries refuse to recognise Jerusalem as Israel’s capital without a peace settlement with the Palestinians, which would include East Jerusalem as the capital of a Palestinian state.

It is understood the cost of relocati­ng the embassy, with estim­ates of up to $200 million, was a factor in deliberations.

The Australian understands Foreign Minister Marise Payne indicate­d to her Indonesian counterpart Retno Marsudi and Indonesian Foreign Ministry offici­al Dirjen Desra on a trip to Bali last week where the government may be headed on the issue.

The announcement by Scott Morrison that Australia would consider a relocation as a show of solidarity with Israel and a demonstration of the depth of our friendship with the only Middle East democracy came days before the Wentworth by-election.

It gave rise to accusations that it was a political gambit, with the electorate having a large Jewish constituency. However, the Jewish lobby had been consulted about the potential move long befor­e the by-election, with the Prime Minister long having a convictio­n on the issue.

Malaysia and Indonesia, which has the largest Muslim population in the world, reacted angrily to the announcement. Neither country recognises Israel’s right to exist.

Indonesia was not expecting an embassy move.

Senator Payne is expected to provide a further update to Ms Marsudi this week.

Labor MP Michael Danby, who has been deeply involved in the issue, has said Mr Morrison could move to recognise West Jerusalem as Israel’s capital but leave the embass­y shift “until some progress in negotiations with Palestinians”.