well, according to the Guardian in UK ( one of their prominent dailys)

http://www.ynetnews.com/articles/0,7340,L-4220898,00.html
Mind you, this is not some typo or a mistake but a policy of de-legitimization.

You don't have to look so far. The United States doesn't recognize Jerusalem as the capital of Israel. Every president since Kennedy, I think, has promised to recognize Jerusalem before he was elected, and has failed to do so afterward. It's not just a matter of not recognizing the annexation of east Jerusalem. It's a matter of west Jerusalem in the pre-1967 borders not being recognized as a part of Israel, because under the UN partition plan of 1947 it was designated an international city.

And it's not just a US issue. Most countries have their embassies in Tel Aviv for that reason, including Britain, France, China, Russia, etc., etc.

Elan