Israeli Prime Minister Ariel Sharon approved the final route of a barrier around Jerusalem that will include the largest Jewish settlement in the West Bank on the Israeli side, officials said yesterday. It prompted Palestinian complaints that Israel is endangering fledgling peace efforts.

　　The decision means the barrier will encompass lands claimed by the Palestinians for a future state, including traditionally Arab east Jerusalem, the intended Palestinian capital. The barrier will also include a chunk of the Palestinian town of Bethlehem, south of Jerusalem, to include a Jewish shrine, officials said.

　　Israel began building a separation barrier in the West Bank two years ago, saying its aim was to keep out Palestinian attackers. Palestinians say Israel could have built the barrier on its territory if the only concern was security. They say the real intention was to grab West Bank land and draw a final border without waiting for a peace deal. One-third of the barrier has been completed.

　　In the West Bank city of Ramallah, UN Secretary-General Kofi said after a meeting with Palestinian leader Mahmoud Abbas that the United Nations is establishing a register of damages to Palestinian property and claims against Israel resulting from the barrier construction.

　　"We are establishing that register to be able in time to help with those claims," he said.

　　Annan spokesman Stephane Dujarric said the UN General Assembly voted for the establishment of the register, but that it was not a mechanism for exacting compensation claims.

　　Last summer, the General Assembly passed a resolution against the barrier, and the United Nation's world court said in an advisory ruling that the barrier is illegal and must be torn down.

　　The decision on the final route of the Jerusalem segment of the barrier was made late on Sunday in a meeting of senior Cabinet ministers chaired by Sharon, said a senior government official who spoke on condition of anonymity.

　　Under the plan, prepared by the National Security Council, the West Bank settlement of Maaleh Adumim would be included on the Israeli side of the barrier. Eleven crossings would be built into the barrier to allow access from the West Bank, and construction is to be completed by the end of the year, the official said.

　　The Palestinian refugee camp of Shuafat, which straddles the Jerusalem municipal boundary, will be encircled by a separate fence, with a crossing into the city. Many camp residents have Jerusalem identity cards. In Bethlehem, the barrier will cut off Rachel's Tomb, a Jewish shrine, from the rest of the city.

　　The Israeli government official said the barrier largely follows Jerusalem's municipal boundaries. Israel drew those boundaries after capturing east Jerusalem from Jordan in the 1967 Mideast war; at the time, it annexed that sector and several West Bank villages to the city.

　　Palestinian negotiator Saeb Erekat warned approval of the Jerusalem segment could destroy efforts to revive peace talks. "This is a policy of dictation and not negotiation," Erekat said. "This prejudges and prejudices the outcome of permanent status negotiations."

　　Later yesterday, Israeli Defense Minister Shaul Mofaz and Palestinian Interior Minister Nasser Yousef were to meet in another attempt to agree on the terms of handing over five West Bank towns to Palestinian control.

　　(The Associated Press)