Annan urges Israel to end 'occupation'

Annan called the Israeli move on the Palestinian Authority offices "unwise."

UNITED NATIONS (CNN) -- U.N. Secretary-General Kofi Annan urged Israel to end its "occupation" of Palestinian institutions in East Jerusalem, aides said Sunday.

"The Secretary-General considers this action to be an unwise step, which is leading to even greater friction and further violence," a U.N. statement said.

Israel responded early Friday for a suicide bomb attack by seizing Orient House -- the unofficial headquarters of the Palestine Liberation Organization and a symbol of Palestinian aspirations for an independent state -- and raising the Israeli flag atop it.

VIDEO CNN's Jerrold Kessel in Jerusalem reports on what could result from Israeli actions (August 12) Play video (QuickTime, Real or Windows Media) Israelis block Palestinians from Orient House in wake of suicide bombing. CNN's Ben Wedeman reports (August 10) Play video (QuickTime, Real or Windows Media)   MORE STORIES • Suicide bombing injures 20 in Israel   • In Focus: Suicide bombers heroes at home     EXTRA INFORMATION In-Depth: Mideast struggle for peace

Israeli officials said the takeover of Orient House was meant as a warning to Palestinians that they could lose the political gains they have made if they continue to attack Israel.

"There will be no reverse in this decision," Jerusalem Mayor Ehud Olmert said. "The Orient House has become a symbol of provocations, of almost endless activities against the law of Israel and against the status of Israel in the united city of Jerusalem and as such it had to be closed."

Israeli Prime Minister Ariel Sharon has yet to get his senior coalition partner, Foreign Minister Shimon Peres, to agree. Peres opposed the takeover and has urged Sharon to drop his policy of not talking with the Palestinians while under fire.

The action came after a Palestinian bomber set off an explosion in a pizza restaurant in central Jerusalem around lunchtime Thursday, killing himself and 15 others and wounding about 100 people.

Annan's statement follows numerous protests over the seizure. The National and Islamic Coalition has called a general strike for Monday. Several Arab governments and newspapers have condemned the Israeli closure of Orient House.

Israeli authorities seized eight other buildings, including the house of the governor of Abu Dis. The house is the base of Force 17 -- Palestinian Authority Chairman Yasser Arafat's elite guard -- and other Palestinian security and intelligence forces.

The moves prompted two days of Palestinian protests, including a demonstration Saturday that resulted in 12 arrests.

"We're here because this is our city," said Palestinian Cabinet minister Hanan Ashrawi, who led Saturday's march. "It's an occupied city, I know. They have arms, they have weapons, they have police, they have mortar guns, but it is Palestinian and it is under occupation."