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rocco is expected to open a simi-
lar office soon in Tel Aviv.
Mr. Peres and his Tunisian
counterpart, Habib Ben Yahia,
announced that the two countries
would soon open liaison offices in
each other's countries.
Both Morocco and Tunisia es-
tablished lower-level ties with Is-
rael earlier thisyear.
Mr. Peres also indicated that
the Persian Gulf states of
Bahrain, Qatar and Oman may
be next in line to establish ties
with Israel.
While the 2,000 delegates at-
tending the conference discussed
regional development projects
and cooperative efforts, Israeli
business executives pointed out
that no major deals were signed.
They also said that on more
than one occasion Arab delegates,
especially the Saudis, shunned
open contacts with the Israelis.
Some of the negative Arab re-
action stemmed from the verbal
sparring between Palestine Lib-
eration Organization Chairman
Yassir Arafat and Israeli Prime.
Minister Yitzhak Rabin in their
remarks at the opening ceremo-
ny on Sunday.
After Mr. Arafat declared that
Jerusalem would be the capital
of a Palestinian state, Mr. Rabin
declared that Jerusalem was, is
and will remain the capital of Is-
rael.
Jerusalem entered the picture
again on the final day of the con-
ference, when Jordan's Prince
Hassan said that Jordanwould
eventually transfer responsibili-
ty for the Muslim holy sites in
eastern Jerusalem to the Pales-
tinians — only after the final sta-
.....
Zionist General Council, the rul-
ing body of the WZO, called on
the Board of Governors to ap-
prove Mr. Leket as the perma-
nent chairman.
ed by the Jewish Agency.
Many of the Israelis have ex-
pressed anger that more money
has not been raised and more of
the pie has not been allocated.
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Jewish Agency Talks
About Budget Problems
The Council claimed the
Agency is being hurt by the fail-
ure to appoint a permanent head.
But its move was seen mostly as
a vote of confidence for Mr. Leket
and had little impact.
For his part, Mr. Leket says he
is not yet a candidate and has not
actively campaigned for the post.
But he has clearly hoped that his
performance as acting chairman
would win him the support of
skeptics who say he does not have
the necessary "stature" for the
job.
"Of course I want to be per-
manent chairman," said Mr.
Leket this week. "I feel I'm the
right man at the right time and
the right place" and "I think I
proved what I can do."
But, he added, "I have always
said if a better candidate will be
introduced I myself will consider
supporting him."
Meanwhile, the Jewish Agency
was grappling with the fact that
this year's income from the fund-
raising campaigns has not met
projections. Departments had to
scale down their planned pro-
grams as a result.
The income for this budget
year from the United Jewish Ap-
peal campaign alone is about
200 million, down from the $218
million projected by the fund-rais-
ers and the $230 million project-
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tus of the city is determined.
Prince Hassan later told an Is-
rael Radio reporter that Jordan
would not completely relinquish
its ties to the holy sites.
He said he hoped that after Is-
rael and the Palestinians resolve
the final status of Jerusalem in
negotiations set to begin in 1996,
a council encompassing all groups
who assert a claim over the Mus-
lim holy sites could be formed to
administer them.
"We hope we can evolve an Is-
lamic council which is truly rep-
resentative of Islam," Prince
Hassan said.
Jerusalem (JTA)— Budget prob-
lems and the selection of a chair-
man topped the official and
unofficial agenda of the Jewish
Agency's Board of Governors
meeting here.
With Agency Chairman Sim-
cha Dinitz on trial for fraud and
abuse of the public trust, the
board once again extended the
acting chairmanship of Yehiel
Leket until February, when it
was agreed a permanent chair-
man will be installed.
At the same time, sources say
the Diaspora fund-raisers pri-
vately decided they would not
support Leket for the permanent
post and are seeking a meeting
with Prime Minister Yitzhak Ra-
bin to express their support for
other candidates.
Agency rules call for Mr. Ra-
bin, as head of the Labor Party,
to put forward the candidate or
candidates for chairman. The
candidates must then be ap-
proved by the party's central com-
mittee.
The Israeli and Diaspora mem-
bers of the World Zionist Orga-
nization then select the final
candidate, who must be ratified
by the Diaspora fund-raisers un-
der the leadership of the chair-
man of the board of governors,
Mendel Kaplan.
At the current meeting, the
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