No Embassy Move

President Clinton on Friday overruled Congress and kept the U.S. Embassy in Israel from relocating to Jerusalem, the declared capital of the Jewish state.

Under law, the shift was supposed to begin May 31 - unless Clinton decided it would jeopardize U.S. national security.

Moving the embassy would bolster Israel’s claim to the city and would disappoint the Palestinians, who eye East Jerusalem as the capital of a Palestinian state.

Observers said it would compromise the U.S. role as mediator between Israel and the Arabs.