PEACE TALKS page 59

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fear that Israel ultimately
will renege on its commit-
ment to negotiate a with-
drawal from the West Bank
and Gaza Strip: "They
believe that if they sign an
interim agreement on limit-
ed self-rule, that will be the
end of the affair and Israel
will regard it as final," he
said.
Palestinians demands are
now expected to focus on
replacing the set-piece, face-
to-face talks with a new
arrangement that involves
U.S. shuttle diplomacy,
direct contacts with the
PLO and aborting the pro-
posed five-year period of
self-rule — instead moving
directly to final-status nego-
tiations with the issues of
territorial withdrawal, Jeru-
salem and the Palestinian
"right to return" firmly on
the agenda.
Israeli analysts are uncer-
tain whether Palestinian
mistrust of Israel is a gen-
uinely held belief, a negoti-
ating tactic aimed at hold-
ing deals with Syria, Jordan
and Lebanon hostage to
last-minute Israeli conces-
sions, or a red herring,
designed to stall the process
until they are confident they
can deliver the Palestinian
masses.
Undoubtedly, that's ask-
ing for a lot. But the Madrid
formula, which excluded the
PLO at Israel's insistence,
has already been breached,
and only time will tell how
much more Israel is willing
to concede in its quest for
peace. ❑

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UP TO -

Barry's
Let's Rent It

situation.
In the space of a week, he
scored a triple triumph:
* By convincing angry
Palestinian negotiators to
retract their threatened res-
ignations, Chairman Arafat
managed to reimpose his
authority over them.
* By declaring that three
of the Palestinian delegates
from the territories are now
PLO officials, he subjected
them to even more rigorous
discipline from Tunis.
* By correctly calculating
that Israel would not balk,
he brought the PLO a giant
step closer to direct talks
with Israel and the United
States, which is expected to
convince the Gulf states to
turn on the cash tap that
has been dry ever since
Chairman Arafat threw his
support to Iraq in the Gulf
war.
As Middle East peace-
making appears to be head-
ing toward what could be its
last lap, Chairman Arafat's
political prowess, albeit tar-
nished among his own con-
stituency, will be tested to
the limit.
When peace talks resume
in Washington, probably at
the end of this month,
Palestinian negotiators are
expected to bid for a radical
revision of the negotiating
formula that was carefully
constructed by former
Secretary of State James
Baker in the run- up to the
October 1991 Madrid peace
conference.
According to the Israeli
official, the Palestinians

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Egyptian Envoy
Addresses Leaders

Jerusalem (JTA) — Egypt's
ambassador to Israel,
Mohammed Basiouny, said
he expects that the parties to
the Middle East peace talks
will sign joint declarations of
principles by the end of the
year.
That, he said, will mark
the start of "a new era of co-
operation and develop-
ment."
Mr. Basiouny made the
remarks in Eilat prior to giv-
ing an upbeat speech to
members of the United Jew-
ish Appeals Prime Min-
ister's Mission, a delegation
of contributors who have
given a minimum $100,000
each to the UJA campaign.
In his speech, Mr.

Basiouny praised the pro-
gress that has been made in
the 14 years since the peace
treaty was signed between
Egypt and Israel, saying it
had "exceeded all optimistic
expectations."
He said the people of the
Middle East have paid a
steep price for war and for
the absence of peace. It is
impossible to overemphasize
the "integration between
peace and economic prosper-
ity," he said.
Peace and regional econ-
omic cooperation are vital
for each Middle East
nation's viability, the am-
bassador said. Without
them, "no country can re-
main competitive in the face