Prime Minister Scott Morrison is facing sharp criticism of his approach to foreign policy after formally recognising West Jerusalem as the capital of Israel, amid new calls to shelve a $16.5 billion trade deal with Indonesia over the decision.
Mr Morrison ended two months of agonising over the policy on Saturday to announce an official shift in Australian policy, angering Palestinians who say he is favouring Israel in the search for a two-state solution to decades of conflict.
But late on Saturday, the Indonesian government released a relatively restrained official response to the announcement that noted Australia’s decision to “not relocate its embassy to Jerusalem” and Australia’s support for “the principle of two-state solution with East Jerusalem as the capital of the state of Palestine”.
The Prime Minister balanced his recognition of West Jerusalem with an acknowledgement of the Palestinian aspiration to establish a separate state with their capital in East Jerusalem.
The statement did not address when or whether the stalled free trade deal between the two countries would be signed, but Australian officials had feared a sterner response.
As reported ahead of his speech on Saturday, he qualified the idea of moving the Australian embassy from Tel Aviv to Jerusalem and said this would only happen in the event of a two-state solution.
Read the article by David Crowe & James Massola in The Sydney Morning Herald.