Palestine will quite soon be an independent state with Jerusalem for capital, Yasser Arafat, Palestinian Authority leader, says in a public statement circulated by the Palestinian News Agency. The statement was timed to the 13th anniversary of Palestinian independence proclaimed in Algeria. The Palestine issue will come to satisfactory settlement only if it envisages sovereign statehood, Jerusalem's metropolitan status, and refugee return in compliance with UN resolution No. 194. The resolution grants the right of homecoming to 1948 refugees, and entitles those who choose not to return to adequate compensations. Sacrifices made by Palestinians will find their reward in national independence, said Yasser Arafat.