Jerusalem was "The last stop" on a migration for both Jews and Muslims. In the first stanza Matthews tells us that the setting is at night and a fire is from the east. In this context, that could be The East Bank at Gaza, a place where Islamic people live and are constantly under "fire" militaristically and ideologically from the Israeli government.
The next two stanzas are the voice of a humanistic person: "Fools are we, if hate's the gate to peace." He could be questioning the US's backing of Israel
. The next stanza's voice is of a Muslim who cries against the attacks: "War, the only way to peace?" He later says, "Go away and dream, go away believe that we (Muslims) are the chosen ones," as Jews are often referred to as the chosen people.
Then a Jewish voice makes a rebuttal: "Oh no gracious heathen god, blooded on the cross are sins are washed enough," meaning that the Jews have paid their debts through persecution and deserve the "last stop."
Then the Muslim again: "Right is wrong now shut up the big lie." The big lie being that they (Palestinians) are getting equality. Then it repeats an earlier argument.
The next line seems to be the Jewish voice towards the Christian (the US): "We hope to break it down, so it's not so black and white." This is a half-veiled attempt at peace, followed by, "It's black and white" saying that maybe they can't change.
The last stanza goes back to the Islamic view, yet there is still the hope to "Break it down."
nelson - left field