The Israelis and Palestinians in East Jerusalem are now roughly equal at about 200, 000 each.
It seems to be a new tone that explicitly also settlements in East Jerusalem are criticized.
But Israel regards East Jerusalem - which it annexed in 1967 - as its territory.
Mr Barak has rejected the suggestion that east Jerusalem might become the Palestinian capital.
Secretary-General Ban Ki-moon criticized an Israeli plan to build an 800-home settlement in East Jerusalem.
CNN: Abbas: Israeli settlements 'greatest obstacle' to peace
The Israeli Cabinet did agree to allow campaigning in east Jerusalem -- except for militant groups.
Today, more than a quarter-million Israelis live in the West Bank, not including East Jerusalem.
But the seizure and closure of Orient House in East Jerusalem is of a different order.
He said the request entailed international recognition on 1967 borders with East Jerusalem as a capital.
Under the Israeli plans, the new homes will be built in Ramat Shlomo in East Jerusalem.
Did they reach a meeting of the minds on settlement expansion in East Jerusalem?
Similar rallies were held across the West Bank, East Jerusalem and even in the Gaza Strip.
For his part, Mr Arafat is determined to defend the Palestinian claim to Arab East Jerusalem.
Peace talks have been stalled over construction in the West Bank and east Jerusalem.
Palestinians are seeking to establish their capital in East Jerusalem under a two-state solution.
Mr Davies criticised the extension of settlements and the destruction of Palestinian homes in East Jerusalem.
For example, with the settlements, or building in East Jerusalem, or keeping Gaza closed.
There are about 320, 000 people in the West Bank and 200, 000 in East Jerusalem.
The report cited evidence of "dispossession, evictions, demolitions and displacement, " particularly widespread in East Jerusalem.
And Israel's interior ministry is stripping ever more East Jerusalem Palestinians of residency papers.
The Palestinians hope to make East Jerusalem the capital of a future Palestinian state.
Jews were unable to worship at their holy sites in East Jerusalem, which came under Jordanian control.
It rejects anything less than a total Israeli withdrawal from lands occupied in 1967, including East Jerusalem.
Israel captured these territories in the 1967 war and still occupies the West Bank and East Jerusalem.
Much of the construction takes place in so-called "settlement blocs" close to Israel and in east Jerusalem.
Israel demolished a Palestinian property in occupied East Jerusalem a day after the planning decision was publicised.
Palestinians refuse to resume negotiations unless Israel stops building settlements in the West Bank and East Jerusalem.
The international community considers East Jerusalem occupied territory and says Israel's building there is illegal under international law.
Otherwise, Palestinian residents of East Jerusalem would be forced to travel to the West Bank to cast votes.
The Palestinians want a state in the West Bank, Gaza and east Jerusalem, areas Israel captured in 1967.
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