Israeli settlers launch enclave in Palestinian business hub


Israeli police officers walk past a post office building in East Jerusalem April 29, 2014. REUTERS/Ammar Awad

JERUSALEM (Reuters) - The smell of fresh paint wafts through the domed lobby of the latest Israeli arrival in East Jerusalem - a Jewish seminary in a bustling commercial area in the same building as a post office serving thousands of Palestinians every day.

Otzmat Yerushalayim, which includes sleeping quarters and could house as many as 300 young Israelis, is the first Jewish housing venture on Saladin Street, a main shopping thoroughfare across from the walled Old City.

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