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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Africa Europe Latin America Middle East North America Mayor delays divisive east Jerusalem park project AFP - 2 hours 5 minutes ago Send IM Story Print A Palestinian man leads his horse across a green patch overlooking Al-Bustan on the outskirts of Jerusalem's Old City in 2009. The Israeli mayor of Jerusalem buckled to pressure, delaying plans for a new archaeological park that could involve the demolition of dozens of Arab homes and fuel unrest in the Holy City. JERUSALEM (AFP) - – The Israeli mayor of Jerusalem buckled to pressure Tuesday, delaying plans for a new archaeological park that could involve the demolition of dozens of Arab homes and fuel unrest in the Holy City. The decision came after Prime Minister Benjamin Netanyahu asked Mayor Nir Barkat to postpone the announcement until an agreement could be reached with local residents in a bid to stave off international protests. "The prime minister asked me to speak and negotiate with the residents," Barkat told reporters. "I of course agreed, and I am delaying submitting the programme to the planning committee while we continue to talk to residents," he said. Barkat had intended to announce a new development scheme in King's Garden, the Hebrew name for the area outside the Old City known as Al-Bustan to its mostly Arab residents. But Netanyahu warned that, while the city should do as it sees fit, going ahead with the project now would serve "interest groups that want to cause disputes and show Israel in a distorted light at home and abroad." The area is part of the so-called Holy Basin, believed to be the site of ancient Jerusalem during the time of the biblical kings David and Solomon. Now it is a crowded Arab neighbourhood in a part of the city occupied by Israel in the 1967 Middle East war and annexed in a move not recognised internationally. If the project goes ahead it could fuel further outrage following clashes in Jerusalem earlier this week between Palestinians and Israeli police in and around the flashpoint Al-Aqsa Mosque compound, revered by Muslims as well as Jews who call it the Temple Mount. Israeli media reported that the plan calls for the destruction of dozens of houses built without Israeli permits, some of which are decades old, and for their owners to be compensated with businesses inside the new park. The United Nations also expressed concern, saying the move could jeopardise attempts to bring Israel and the Palestinians back to long-stalled peace talks. "If this turn out to be true, it's a matter of serious concern. We are trying to reduce tensions at the current time, not exacerbate them," said Richard Miron, a spokesman for UN Middle East envoy Robert Serry. "Whatever the intentions behind such a project, Israel needs to understand that demolishing Palestinian homes in east Jerusalem demolishes confidence not only among Palestinians but frankly also internationally," Miron told AFP. The project was also expected to legalise a seven-storey building constructed by Jewish settlers without a permit in 2004 in the same neighbourhood. An Israeli court sealed the building last month. Many Palestinians in east Jerusalem risk having their homes razed because they were built or expanded without the necessary permits which are nearly impossible to obtain from the Israeli authorities. Several Western governments, including the United States, have urged Israel to refrain from such demolitions to avoid further harming the already hobbled Middle East peace process. Israel captured east Jerusalem with the rest of the West Bank in 1967 and annexed it. The Palestinians want to make it the capital of their promised state. 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