1 i MONUMENTS BY BERG AND URBACH . _ San Francisco (JTA) — Safeway Stores Inc. has agreed to pay $995,000 to the U.S. Commerce Department to settle charges that the supermarket chain coop- erated with the Arab boycott against Israel. Peter Magowan, board chairman and chief executive officer of Safeway, based in Oakland, Calif., said last week's cash settlement, a fraction of the one originally levied, "is a victory for us and in no way constitutes an ad- mission by the company that we violated the law." Moreover, he said, Safe- way's conduct has been vin- dicated by the fact "that its practices did not merit the harsh penalties the govern- ment previously sought." The Commerce Department had charged Safeway with 449 violations of the Export Administration Act of 1977, imposed a $4.5 million fine on the supermarket chain and sought a two-year suspension of the company's export privileges. Besides reducing the fine in the settlement, the government dropped its de- mand to keep Safeway from doing business overseas. But Will Maslow, AJCon- gress legal counsel and an ex- pert on the Arab boycott, called the agreement "a vic- tory for the OAC (Office of Anti-boycott Compliance) and shows how strong its case was from the very beginning." The Commerce Department originally charged Safeway with supplying approximate- ly 10 stores in Kuwait and Saudi Arabia between 1981 and 1986 with a list of the company's suppliers, some of whom were Israeli. According to the OAC, that list subse- quently enabled the Arab-run grocery stores to boycott cer- tain Israeli-manufactured products. The Arab stores were li- censed to operate under the Safeway name, but were not owned by the company. Safe- way claims it no longer sells products to the Arab stores. Left-Wing Italian Jews Voice Mixed Feelings Rome (JTA) — Left-wing Italian Jews are trying to sort out their mixed feelings about Israel's current policy toward the Palestinians and the way it impinges on them as members of the broader left in Europe. These issues were brought into the open at a crowded, emotionally charged con- ference in Milan over the weekend. It was held in the context of past and present relations between the Jewish community and other Italians in social, political and other areas. There was general agree- ment that the last 20 years have seen a shift of the Euro- pean left from sympathy with Israel to a sometimes radical pro-Arabism. This is in many ways a wor- risome development, said ederico Steinhaus, president I f the Jewish community of I erano, in northern Italy. Non-Israeli Jews are in- reasingly a target of the hange in European leftist at- itudes that stem from the 967 Six-Day War, he said. He oted that since then, Jews ave been accused of quating criticism of Zionists ith anti-Semitism. Federico Coen, a socialist activist, told the Milan meeting that since the 1967 war there has been a weaken- ing of the links between the ideals of Zionism and the ideals of socialism. Israel began to be stigmatized as the avant- garde of imperialism in the Third World. "One person killed by Israel counted the same as 100 deaths caused by the Arabs," he said. Gun License Applications Up Jerusalem (JTA) — There has been an upsurge in ap- plications for gun licenses by the general public, a develop- ment linked directly to the continuing unrest in the West Bank and Gaza Strip and the escalation of terrorist incur- sions against Israel. The head of the Interior Ministry's firearms licensing department, Moshe Weiss, said Monday that the ministry's strict licensing policy is under review and may be relaxed. 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