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International relations

Australia's Jerusalem proposal puts Indonesia trade pact at risk

Morrison floats moving embassy while Muslim countries object

The U.S. government has recognized Jerusalem as the capital of Israel and moved its embassy earlier this year.   © Reuters

SYDNEY/JAKARTA -- Australian Prime Minister Scott Morrison said on Tuesday that he is considering recognizing Jerusalem as the Israeli capital and moving Australia's embassy there from Tel Aviv.

The proposal triggered immediate opposition from Muslim countries, including Indonesia, which is preparing to sign a free-trade pact with Australia later this year.

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