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NPR's Jennifer Ludden reports that at the heart of the dispute between Israel and the Palestinians is insistence on ruling the tiny, one-mile-square old city of Jerusalem, a site sacred to Jews, Muslims and Christians. Since its conquest of the city in the 1967 war, Israel has ruled the old city insisting that it must remain the undivided capital of the state of Israel. Palestinians are demanding sovereignty over, at least, the areas of old Jerusalem where Arabs are a majority.

The House of Representatives today approved a bill that would raise the amount that certain savers can contribute to their tax-deferred retirement accounts. The current annual limit on these contributions is $2,000 but the new legislation, if passed by the Senate and signed by President Clinton, would raise that limit to $5,000. NPR's Brian Naylor reports.

JOYCE JOHNSON CONTINUED.Jazz critic Kevin Whitehead reviews –The Complete Blue Note Horace Parlan Sessions— (Mosaic).12:58:30 NEXT SHOW PROMO (:29) PROMO COPY On the next Fresh Air writer JOYCE JOHNSON talks about her relationship with Beat Icon Jack Kerouac. JOHNSON met Kerouac in 1957, 9 months before Kerouacs novel –On The Road— was published. JOHNSONs new book –Door Wide Open,— includes letters she and Kerouac wrote each other during their affair. Thats coming up on the next Fresh Air.

Host Bob Edwards talks to NPR's Eric Weiner about the upcoming G-8 summit on world economy in Okinawa, Japan. Leaders from around the world gather for the three-day summit which opens tomorrow, to discuss how to ease the burden of debt and poverty of the world's poorest countries.

Scott Horsley of member station KPBS reports on aggressive trial lawyers who've sued the tobacco and gun industries and are now considering class action lawsuits against health maintenance organizations, drug makers, and liquor distillers. One such attorney is Dick Scruggs from Mississippi, who led the suit that won a 246-billion-dollar settlement for the states against cigarette makers and a 400-million-dollar fee for himself. Supporters of such lawsuits say they help reduce corporate irresponsibility Some critics say they're motivated by greed; other critics say that legislatures, not courts, should make social policy

Host Bob Edwards talks to Washington lawyer Michael Hausfeld who led the class action lawsuit on behalf of survivors of Nazi slave labor. Under a settlement signed this week, a foundation set up by Germany will pay out five billion dollars in compensation. Jews who worked as slave laborers will receive 7,500 dollars each. Forced laborers, mostly East Europeans, who were treated less harshly, will receive 2,500. More than a million people will be eligible to receive payment.

Charlotte Renner of Maine Public Radio reports that although their numbers are dwindling, classic lakeside camps continue to be a favorite way for kids to spend their summer vacations. Still, many camps say it's hard to stay in business because of rising costs.

NPR Business reporter Steve Krueger reports on the latest developments on the dispute between the Screen Actors Guild and American Federation of Television & Radio Actors. Today, both sides are scheduled to meet with federal mediators in New York in a new bid to resume contract talks.

Host Bob Edwards talks to NPR's Ted Clark about the latest development in the Middle East peace talks. Prime Minister Ehud Barak and Palestinian leader Yaser Arafat are continuing their negotiations after the White House announced it had ended in failure.

NPR's Christopher Joyce reports on a new discovery in the insect world... a wasp that manages to interfere with a spider's web-building instinct for it's own personal benefit.

Host Bob Edwards talks to T.R Reid, London bureau chief for The Washington Post about the festivities in London surrounding the Queen Mother's birthday. The Queen Mum will be 100 on August 4th, and the party's already underway all over England.

NPR's Andy Bowers reports a judge in Los Angeles has ruled the city's plan to keep convention protesters away from the Staples Center violates the first amendment because it would force those protesting to go more than two football fields away from the site. City planners are now trying to come up with a new plan that satisfies both the convention and protesters.