GEORGE MITCHELL: So what we got was a moratorium [on new settlements]. Ten months. Far less than what was requested, but more significant than any action taken by any previous government of Israel for the 40 years that settlement enterprise has existed. Ten months of no new starts in the West Bank -- less than what we asked, much, much greater than any prior government has done. And we think over time itâs going to make a significant difference on the ground. CHARLIE ROSE: And you and Secretary Clinton praised Prime Minister Netanyahu for agreeing to that. GEORGE MITCHELL: Yes. CHARLIE ROSE: It does not include East Jerusalem. Thereâve been announcement in the last 48 hours of new settlement construction in East Jerusalem where the Palestinians want to make their capital. GEORGE MITCHELL: Yes. CHARLIE ROSE: And itâs in the midst of Palestinians. GEORGE MITCHELL: If you go back over time and look at Camp David and the prior efforts, you will see that the single most difficult issue amidst an array of extremely difficult issues is Jerusalem. And it is very complicated, difficult, emotional on all sides. Jerusalem is significant to the three monotheistic religions-- Christianity, Judaism, Islam. Itâs important to everybody. We recognize that and we try to deal with it. But understand the different perspectives. Israel annexed Jerusalem in 1980. CHARLIE ROSE: "Annexed" is an important word. GEORGE MITCHELL: Annexed is a very important word. No other country, including the United States, recognizes that annexation. Neither do the Palestinians, nor the Arabs, of course. But for the Israelis, what theyâre building in is in part of Israel. Now, the others donât see it that way. So you have these widely divergent perspectives on the subject. Our view is letâs get into negotiations. Letâs deal with the issues and come up with the solution to all of them including Jerusalem which will be exceedingly difficult but, in my judgment, possible. The Israelis are not going to stop settlements in, or construction in East Jerusalem. They donât regard that as a settlement because they think itâs part of Israel. CHARLIE ROSE: People recognize the annexation. How many countries? GEORGE MITCHELL: To the best of my knowledge, there arenât any. Immediately after the annexation the United Nations... CHARLIE ROSE: So youâre going to let them go ahead even though no one recognizes the annexation? GEORGE MITCHELL: You say "Let them go ahead." Itâs what they regard as their country. They donât say theyâre letting us go ahead when we build in Manhattan. CHARLIE ROSE: But donât international rules have something to do with what somebody can do to define as their country? GEORGE MITCHELL: There are disputed legal issues. Of that there can be no doubt. And we could spend the next 14 years arguing over disputed legal issues or we can try to get a negotiation to resolve them in a manner that meets the aspirations of both societies. Keep this in mind -- the Israelis have a state, a very successful state. They want security, which they ought to have.