BACKGROUND Moment Of Truth before President Bush leaves for his summit with Mikhail Gorbachev in Moscow next weekend. But getting to the peace table is, after all, the easy part. Mr. Shamir, said the source, was aware that "the real problems will only begin when the substantive negotiations start in face-to- face talks. "Now that he has exhausted the possibility of further procedural delays, he will focus on how to resist the demands to relinquish land." The source, who was at pains to stress the vast chasm that separated agreement on procedure and agreement on substance, said the only real procedural point still outstanding was the question of the Palestin- ian representation at the talks. (see box) Still, Israelis, skeptical as ever and as trusting of Syrian President Hafez el- Assad as of a fox, were stirred by the drama of the possibility of direct negotia- tions between the Arab states and Israel to resolve their decades-long conflict. Officials noted that Mr. Shamir was in a relatively stable position to take polit- ical chances. The Knesset is recessed until the end of summer so the government cannot be brought down by right-wing coalition part- ners who oppose the Ameri- can plan. And even if the right-wing partners leave, Mr. Shamir can either call for early elections, which would probably strengthen his hand, or he could bring the Labor party into his government. Labor leader Shimon Peres has pledged to keep any government in power that is engaged in the peace pro- cess. The dramatic events which unfolded in Jerusalem this week followed - the departure of Secretary of State James Baker, who ended his* fifth round of shuttle diplomacy with a ringing appeal to Israel to seize the "moment of historic opportunity" for peace with its Arab neighbors. Following an 18-hour visit, which could set the parameters of future rela- tions between Washington and Jerusalem, Mr. Baker challenged Israel to break out of its web of procedural objections and join the U.S.-sponsored peace pro- cess. Washington's proposal en- visages a largely ceremonial opening conference, spon- sored jointly by the United States and the Soviet Union with a passive UN presence, which would lead to direct, bilateral negotiations bet- ween Israel and its Arab neighbors. It does not stipulate the participation of the Palestine Liberation Organ- ization in the talks and is understood to be vague of the question of precisely who will represent the Palestin- ians in a joint negotiating delegation with Jordan. The proposal has won the backing of all the main Arab protagonists. Winding up almost four hours of talks with Israel's leaders in Jerusalem --- following stops in Syria, Saudi Arabia, Egypt and Jordan — Mr. Baker spelled out the challenge to the Jew- ish state. He said that Israel had justifiably sought direct negotiations with its Arab neighbors for the past 43 years. "Direct negotiations are the only way to solve prob- lems and the only way to secure peace," he said. "Now there is a real opportunity to get to those face-to-face apparently avoided the contentious issue of Pa- lestinian representation, which caused his peace efforts to founder last year, but there are indica- tions that he will not allow their demands to obstruct the progress of his current peace plan. In another twist, the gathering pace of the peace process and the Pa- lestinian meetings with Mr. Baker have exposed rifts within the Palestin- ian camp. This week, the group, led by Faisal Husseini, which met with Mr. Baker, came under fire from two radical ex- tremist movements which are normally in sharp ideological conflict. In a rare joint state- ment, the Islamic funda- mentalist Hamas move- ment and the Marxist- based Popular Front for the Liberation of Palestine condemned the meeting, asserting that Mr. Husseini and his col- leagues did not represent the Palestinians. The Palestinians may be unhappy at the way the peace process is evolv- ing, but they have been seriously weakened by their posture during the Gulf war and an unforgiv- ing Mr. Baker, aware of their vulnerability and the erosion in their bargaining position, may be prepared to play "hard ball." There are indications, said a high-level Israeli source, that Mr. Baker will offer the Palestinians a place at the negotiating table on terms which are acceptable to Israel. If they still prove obstructive to the pro- gress of his plan, he may choose to leave them out of the process altogether for the time being while he concentrates on laun- ching bilateral negotia- tions between the states of the region. ❑ Setback For The PLO As a result of its support for Iraq's Saddam Hus- sein in the Gulf war, the Palestine Liberation Organization lost the fi- nancial support of its Gulf benefactors, the political support of its champions, notably Egypt, and the diplomatic support of most of the rest of the world. Moreover, following Syria's "Treaty of Brotherhood" with Beirut, the PLO fighters in Lebanon have been effectively neutered and are now under the control of the Syrian Army. As Middle East realities prepare to undergo a sea change, the Palestinians may be about to lose the most precious prize of all — an independent state, for which they have wag- ed a bloody campaign for more than 25 years. Palestinians, though not the PLO, will be in- vited to the proposed peace conference, not as a separate delegation but as an appendage of the Jor- danian negotiating team. And their choice of representatives is likely to be severely cir- cumscribed by Israeli Prime Minister Yitzhak Shamir. He insists that he will not negotiate with PLO officials, with Palestin- ians who have previously been deported from the occupied territories or with Palestinian residents of east Jerusalem. Unlike the West Bank and Gaza Strip, which Israel regards as "disputed territories," east Jerusalem was for- mally annexed by Israel after the 1967 Six Day War and Mr. Shamir asserts that any Palestin- ian negotiators from east Jerusalem would under- mine its sovereignty over "Israel's eternal, un- divided capital." So far, Mr. Baker has negotiations. Israel now has Arab partners willing to engage in direct negotia- tions. This reflects positive changes in the Arab world." Mr. Baker said his diplo- matic efforts had been designed to achieve three . goals: "To produce direct negotiations; to produce a basic approach which Israel has always said is acceptable to it; to produce a climate that helps these negotiations succeed. In our view, we've done all three." He stated emphatically that direct, bilateral negotiations would follow the opening conference and that the parties. would be free to agree among them- selves whether they wanted other parties to be present at their negotiations. In an attempt to sweeten the pill and build a climate appropriate to peace- making, Mr. Baker also won agreement among a range of Arab states, including Saudi Arabia, to scrap the Arab economic boycott in exchange for an Israeli commitment to halt set- tlement activities. Israel rejected the ap- pearance of linkage between the two issues, insisting that the boycott, which costs Israel some $100 million a year in lost trade and 10 per- cent a year in lost foreign investment, is a form of war- fare, while the settlements are a subject for discussion at the negotiating table. In addition to the promise of direct talks, the Baker proposals also included an agreement that the Palestine Liberation Organ- ization would not attend a peace conference and that the Palestinians would be THE DETROIT JEWISH NEWS 35 TERNATIONA Continued from Page 1