Australia now recognises west Jerusalem as Israel's capital, Prime Minister Scott Morrison said Saturday, but a contentious embassy shift from Tel Aviv will not occur until a peace settlement is achieved. Canberra became one of just a few governments around the world to follow US President Donald Trump's lead and recognise the contested city as Israel's capital, but Morrison also committed to recognising a future state of Palestine with east Jerusalem as its capital. "Australia now recognises west Jerusalem -- being the seat of the Knesset and many of the institutions of government -- is the capital of Israel," Morrison said in a speech in Sydney.
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