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ETHICS AND CONSIMER PROTECTION. ecretary of State James Baker says the United States is ac- tively pressing the Palestine Liberation Organization in Tunis to give "the green light" to Palestinians living on the West Bank and Gaza to accept Israel's proposal for autonomy elections as part of a broader political peace negotiation. Interviewed Sunday on NBC's "Meet the Press," Baker warmly praised Prime Minister Yitzhak Shamir's election proposal, while acknowledging that the United States and Israel still differ over various aspects of the plan. Baker again defended his controversial speech last week before the American Israel Public Affairs Commit- tee (AIPAC), insisting it was "balanced:' He said that he agreed with Shamir's recent statement that U.S.-Israeli relations were very good despite long-existing dif- ferences on some territory issues. . "One of the things I said in that speech, for instance, was that we think that Prime Minister Shamir's proposal for elections as part of a broader political negotiation was a very good proposal," Baker said. "We have some differences with some aspects of it. But as a vehicle for mov- ing toward peace in the Mid- dle East we think it was a very, very good effort and we're very pleased with it. And we want to try to follow up on that, and indeed we are following up on it." Baker said the next step in the process involved convinc- ing the PLO to accept the Israeli plan. "We are pressing the Palestinians in every way that we know how, through our dialogue in Tunis," he said. "Through our am- bassador there, to the PLO, we have suggested to the PLO that they permit Palestinians in the occupied territories to engage with Israel on this question of elections." U.S. officials said that Baker and other administra- tion policy-makers are con- vinced that the Israeli elec- tions proposal will never get off the ground unless the PLO in Tunis accepts it. The U.S. dialogue with the PLO, they said, is being used to press the PLO on this issue. The Americans said that Baker would also continue his efforts in Europe this week to enlist the support of America's NATO allies to en- courage the PLO to go along with the plan. Asked whether the Bush administration would appoint a special Middle East envoy, Baker replied: "No, because we're devoting a lot of atten- tion to it ourselves. Frankly we don't think progress is made in the Middle East with high visibility initiatives. We think, until you till the Dennis Ross: Hears from Arad. ground carefully, sometimes those things can preempt more promising possibilities." Earlier last week, Baker assured Israel that he would actively press America's NATO allies to support Israel's proposal for Palesti- nian elections. The secretary would make clear that the United States fully supports the Israeli peace initiative and expects the European allies to follow suit. The Israeli Ambassador to the United States, Moshe Arad, last Thursday met with Dennis Ross, director of the State Department's Policy Planning Staff, to express Israel's disappointment in Baker's AIPAC speech. The ambassador, according to Israeli officials, told Ross that Baker had failed to reaf- firm several long-standing elements of U.S. policy, in- cluding opposition to any complete return to the pre-1967 lines and the need for secure and recognized borders for Israel. Arad noted that there was no reference in the speech to the need for a unified