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Telegraph Across From Tel-12 Mall open -tit 9:00 Mon. & Thurs.Eves. 53.1300 Jerusalem (JTA) — Israeli of- ficials disclosed Monday that one of the two Palestine Libera- tion Organization officials Prime Minister Margaret Thatcher in- vited to London for talks this week was implicated in a 1969 terrorist bomb attempt on the British consulate in east Jerusalem The disclosure was made after British Foreign Secretary Sir Geoffrey Howe cancelled a scheduled meeting with the two PLO members, Elias Khoury, the Anglican Bishop of Jerusalem and Mohammed Milhem, former Mayor of Halhoul in the West Bank. The meeting was called off be- cause Khoury and Milhem re- fused to meet a condition set by Thatcher for the meeting — that they join in a statement recog- nizing Israel's right to exist within secured and recognized borders and condemning all forms of terrorism and violence. Premier Shimon Peres said Monday he was "not surprised" the two PLO officials rejected the statement. He said Thatcher had told him when she issued the invitation that they would be required to put their names to such a declaration. He said he replied to the British leader, "Why wait" until they set to London, because he was con- vinced they would not sign. The invitation, when it was announced several weeks ago, elicited a bitter_ response from Israel. Deputy Premier and Education Minister Yitzhak Na- von, a leading moderate, asked a British interviewer at the time. "How would you feel were we to invite IRA men?" The British officials disclosed that Khoury was involved in 1969 in ia terrorist attack on a Jerusalem supermarket which killed two shoppers. Another terrorist target that same day was the British consulate in East Jerusalem where explo- sives Khoury snuggled on behalf of. George Habash's extremist popular Front for the Liberation of Palestine had been planted. The plot was -foiled because of the alertness of the Consul's wife and another member of the legation staff. The explosives were removed and safely deto- nated in an open 'field. Two months later, Khoury was re- quired to leave the country. He was recently elected to the PLO Executive. Milheni, also a member of the PLO Executive, was expelled from the West Bank in 1900 by then Defense Minister Ezer Weizman. He was suspected of incitement that led to the fatal shooting of six yeshiva students in Hebron by Arab terrorists. Peres Hopes Initiative Yields New Peace Effort Jerusalem (JTA) — Premier Shimon Peres will make new proposals to President Reagan on how to bring Jordan and non-Palestine Liberation Organ- ization Palestinians to the peace table with Israel, aides of the Premier told reporters in Jerusalem Monday. Peres believes the discrediting of the PLO and its disconfiture over. the Achille Lauro hijack af- fair could be a propitious turn- ing point in Middle East peace efforts, according to the aide* The Premier plans to use this week's visit to Washington to convince Administration and public opinion in the United States that•there is a close, di- rect relationship between PLO leader Yasir Arafat and all . of the PLO leadership with recent terrorist events in the Middle East, including the seizure of the Italian cruise ship and the murder of one of its passengers, Leon Klinghoffer, by Palestinian terrorists. . Peres has praised the U.S. in- terception of the four hijackers. He called it "a landmark in the fight to erredicate terrorism" in a letter he ,Sent to Reagan. He sent a simila letter to Secretary. of State George Shultz. At Sunday's Cabinet session, Peres rejected Likud demands for a full scale policy debate by the Cabinet or the Knesset be- fore his departure for the U.S. He said the positions he would present in Washington con- formed to the policy guidelines of the national unity govern- ment drawn up by the Labor Party and Likud when they formed their coalition in Sep- tember 1984. Peres' aides maintained that the guidelines allow the Premier to be flexible and forthcoming. Peres is scheduled to address the 40th anniversary session of the United Nations General As- sembly in New York Monday. Israeli Seamen Killed In Spain Jerusalem (JTA) — U.S. Sec- retary of State George Shultz has expressed deep sympathy and revulsion over the murder of two Israeli merchant seamen in Barcelona, Spain last week. Israeli officials said the two men were killed by the PLO. Their bodies, which had appar- ently been tortured before death, were found in an apart- ment in the city by Spanish police. In a letter to Premier Shimon Peres Sunday, Shultz wrote: "I want to . \. express my deep sympathy and revulsion at brutal murders of two Israeli seamen in Spain. The terrorist murders of innocent citizens of both our countries must serve to strengthen our determination, which ;I know you share, to ex , pose and eliminate the scourge of terrorism." . -