Australia has decided to formally recognize west Jerusalem as Israel's capital, but will not move its embassy until there is a peace settlement between Israel and the Palestinians, Prime Minister Scott Morrison announced Saturday.
Morrison said Australia would recognize east Jerusalem as Palestine's capital only after a settlement has been reached on a two-state solution. The Australian Embassy will not be moved from Tel Aviv until then, he said.
"We look forward to moving our embassy to west Jerusalem when it is practical," he told reporters in Sydney.
While the embassy move has been deferred, Morrison said his government would establish a defense and trade office in Jerusalem and would also start looking for an appropriate future location for the embassy in Jerusalem.
"The Australian government has decided that Australia now recognizes that west Jerusalem – the seat of the Knesset and many of the institutions of government – is the capital of Israel," Morrison said.
He said the decision respects both a commitment to a two-state solution and longstanding respect for U.N. Security Council resolutions.
With the announcement, Australia became the third country to recognize Jerusalem as Israel's capital, following the U.S. and Guatemala.
The recognition has outraged the Palestinians, who envision parts of Jerusalem as the future capital of a Palestinian state.
However, Australia's recognition differs from the others in that it recognizes only the western part of the city.
The move is unlikely to please either side entirely.
For the Palestinians, it offers a partial resolution to an issue they believe should be resolved through negotiations. That decision is softened by recognizing their claim to east Jerusalem.
Israel welcomed the recognition of Jerusalem, but the Australian decision falls far short of Israel's claim to the entire city.
The Foreign Ministry issued a statement commending Australia's move as "a step in the right direction," and also praising the Australian government's stance against anti-Semitism and its pro-Israel position at the U.N.
Morrison had earlier floated the idea that Australia might follow the contentious U.S. move of relocating its embassy to Jerusalem from Tel Aviv, but this was seen by many Australians as a political stunt. Critics called it a cynical attempt to win votes in a by-election in October for a Sydney seat with a high Jewish population.
That consideration had sparked backlash from Muslim-majority Indonesia and Malaysia, threatening a free trade deal that has now been delayed.
Opposition Leader Bill Shorten said the decision to recognize west Jerusalem as Israel's capital but not move the embassy there was a "humiliating backdown" from the October by-election campaign.
"What I'm worried is that Mr. Morrison put his political interest ahead of our national interest," Shorten told reporters.
