The prime minister formally recognized West Jerusalem as the capital of Israel, but said Australia would not move its embassy until a peace settlement is reached.<\/b>
\nSYDNEY, Australia \u2014 Australia announced on Saturday that it now recognizes West Jerusalem as the capital of Israel, and will move its Tel Aviv embassy once a peace settlement is reached.
\u201cAustralia now recognizes West Jerusalem, being the seat of the Knesset and many of the institutions of government, is the capital of Israel,\u201d Prime Minister Scott Morrison of Australian said on Saturday.
\u201cIt is the right of every country to determine its national capital,\u201d Mr. Morrison said in a speech to the Sydney Institute, a public affairs forum.
\u201cWe look forward to moving our embassy to West Jerusalem when practical, in support of and after final status determination,\u201d he added.
The announcement makes Australia one of a handful of countries to recognize part of Jerusalem as the capital of Israel, and represents a change in the country\u2019s long-held policy on the negotiations between Israel and the Palestinians.
The move follows the lead of President Trump who formally acknowledged the city as Israel\u2019s capital last year and moved the United States embassy there in May .
The possibility of Australia moving its embassy first emerged during a high-profile political campaign for a pivotal seat in a local election in October.
Critics said floating the idea to move the embassy was an attempt to pander to voters in an electorate with a large Jewish population. The Liberal Party candidate, a former ambassador to Israel, lost the election, resulting in the governing coalition losing its majority in Parliament.
But talk of a potential embassy move also angered Indonesia and Malaysia, important regional partners with Muslim-majority populations. A trade deal between Australia and Indonesia was delayed after Indonesian officials said the deal would go forward only if Australia reconsidered its position.
Australia\u2019s Department of Foreign Affairs issued a warning on Friday for citizens traveling to Indonesia to avoid protests at embassies and consulates in the country.
Mr. Morrison\u2019s announcement was criticized as a \u201creckless and foolish action,\u201d by Bill Shorten, the leader of the opposition Labor Party. \u201cWhat he\u2019s doing is confusing his own political interest with our national interests,\u201d Mr. Shorten said.
Mr. Morrison said the country was still committed to a \u201ctwo state solution,\u201d and acknowledged the desire of Palestinians for a capital in East Jerusalem.
\u201cThe international community must move beyond ritual denunciations of Israel to urge a return to negotiations of a two state solution,\u201d he said.
Australia will also establish a trade and defense office in Jerusalem to encourage a bilateral relationship between the two countries, he said.
The search has already begun in West Jerusalem for a possible site for the Australian embassy.<\/p>\n