Jerusalem 1947, the United Nations Partition Plan provided for an international status for the city of Jerusalem and its vicinity, that was to become a Corpus Separatum under international control. But in the War of 1948-1949, Israel conquered the western part of the city, while Jordan took possession of East Jerusalem.
After the June War of 1967, Israel also occupied East Jerusalem, and in the Jerusalem Law of 1980 declared: ‘Jerusalem, complete and united, is the capital of Israel’, and: ‘Jerusalem is the seat of the President of the State, the Knesset, the Government and the Supreme Court’.
This puts Israel on another collision course with the Palestinians, who regard East Jerusalem as the capital of their state-to-be. The international community has not recognized this unilateral decision by Israel and regards East Jerusalem as occupied territory.
After 1980, all foreign embassies remained in Tel Aviv.