Israel says U.S. wrong on Jerusalem talks

JERUSALEM, Sept. 12 (UPI) -- Israeli leaders are reportedly upset over remarks attributed to a U.S. official that Israel is ready to open talks on Jerusalem with the Palestinians.

Israeli Prime Minister Ehud Olmert told a Kadima Party meeting that his government was sticking by its position that Jerusalem should be left until the end of the talks.

Comments on the Jerusalem issue in Israeli-Palestinian talks reportedly from U.S. Consul General Jacob Walles appeared in the Palestinian daily al-Ayyam and were deemed by Israel as "highly inappropriate," The Jerusalem Post said.

"We have achieved significant progress but we haven't started the negotiations on Jerusalem yet," Olmert told a crowd of several hundred party activists and supporters.

Olmert said he believed a final-status peace agreement was within reach by the end of 2008.