Page 2-ThursdayJuly 20, 1978-The Michigan Daily
BEGIN CLASHES WITH PERES
Knesset split on Israel's position

JERUSALEM (AP)-A shouting
match in Parliament between Prime
Minister Menachem Begin and op-
position leader Shimon Peres heated up
the tense political atmosphere in Israel
yesterday as the Jewish state ap-
proached tough decisions on Mideast
peace issues.
Peres, in his first speech to the
Knesset, or pariliament, since his talks
with Egyptian President Anwar Sadat
10 days ago in Austria, demanded a
debate on the Mideast situation. The
Labor Party chief accused Begin of
"filling a prescription for Israel's
isolation" and of failing to keep the
Knesset informed on peace moves.
BEGIN'S GRUFFLY shouted
response was heavy with sarcasm,
asking Peres if he and Sadat had
discussed the Labor Party's doctrine of
territorial compromise. "You believe it
is the high read, the only way to peace,
and there is no other," said Begin.
Holding a sheet of paper, the prime
minister asked: "What is the meaning
of territorial compromise? Part for me
and part for you." He then ripped the
paper in half.
The harsh words in the Knesset also
reflected divisions in Begin's Likud
cabinet, which is scheduled to respond
on Sunday to Sadat's latest peace
proposals.

Speaking at the Organization of
African Unity meeting in Khartoum,
Sudan, Sadat accused Israel of clinging
"onto the ghosts of the past, still
dreaming of expansion, still giving
priority to appropriation of others' lan-
ds."
OPPOSITION parliamentarians glee-
fully pounced on Begin's paper-tearing
gesture and shouted: "It's not a peace
poster."
For the past two days, Israeli
newspapers have been full of reports
that Defense Minister Ezer Weizman
ripped down a peace poster in Begin's

office building after last Sunday's
stormy cabinet meeting.
Peres took note of the widely reported
division between Begin and his defense
minister, who also had talks with Sadat
in Austria last week and brought back
new proposals from Egypt. Begin and
Weizman were talking during Peres'
speech, and he broke off to chide, "I'm
glad to see the prime minister is talking
to the defense minister. But they should
do it around the cabinet table, not in the
Knesset."
PERES AND BEGIN lunchd together
after their encounter in the Knesset.

At one point, Begin's minister of
commerce, Yigal Hurvitz shouted at
Peres: "You're trying to rise to power
on Sadat's shoulders."
Peres shouted back: "The problem
isn't who will be prime minister-that
will be decided by the Knesset's vote.
The problem is what will the political
situation be-Israel isolated, or Israel
enjoying the support of other nations,
as it has in the past, Israel displaying
political skill in working toward a set-
tlement, or Israel entrenched in
domestic conflcits within the cabinet,
within the Likud, within the Knesset, in
imaginary games of prestige?"

Russia warns of'confrontation
if U.S. pressure continues
MOSCOW (AP)-The Soviet Union the Soviets in apparent retaliation for "Instead they inflcited blows on
airesre one recent dissident trials here.business interests in the United States
Kreind i y trdey ootherresis otin THE SALE OF a Sperry-Univac and other Western countries who were
the interest of the United States and computer system was to have been subordinate to the dictates of
would lead to a "path of confrontation." made to the official Soviet news agency Washington," Izvestia said.
The article in the government Tass. Noting that the volume of Soviet-
The arIi a fn n- Izvestia said any U.S.-Soviet "trade American trade is "insignificant"
n nem Izvestiashingt followedn an- or business contracts are concluded for compared to Moscow's business deals
Preent t hashcng ele a mutual interests." with other capitalist nations, Izvestia
President Carter has canceled a "This is one more A-B-C truth which called on U.S. leaders to reconsider
multimillion dollar computer deal with Should be taken into anount b these their actions.

Mideast talks end

(Continued from Page One)
Despite the U.S. failure to break the
deadlock, Mohammed Ibrahim Kamel,
the Egyptian minister, told reporters
that his government's proposals for the
West Bank and the Palestinians,
dismissed earlier this month as totally
unacceptable, would now be recon-
sidered in Jerusalem.
KAMEL SAID Israeli Foreign
Minister Moshe Dayan "agreed to take
back the Egyptian proposal and recon-
sider it."
Vance also indicated that the Egyp-
tians were increasingly aware of the
security measures that Israel would
need if it gave up the West Bank.
tt 44,. r U...xrn OM; a1n ..r dcr

confidence to Israel that this problem is
being seriously and thoroughly
discussed," Vance said.
"MAJOR differences remain bet-
ween the positions of the two sides," the
U.S. statement said. "There is a lot of
hard work ahead. Common elements in
their approaches have been identified."
Vance would not identify these
elements and said "it is too early to
come to any conclusions yet."
Ambassador Alfred Atherton, the
State Department's principal Mideast
envoy, will leave for Brussels today and
from there to the Middle East to lay the
Grnmdwnrk forVancesvisit.

politicians in the U.S.A. who are hat-
ching their plans of pressure on the
U.S.S.R. in the economic field as well as
inother spheres," the newspaper said.
IT SAID WASHINGTON leaders ap-
parently have not learned the lessons of
cold war days when a trade and
economic embargo imposed on the
Soviet Union and other socialist coun-
tries failed to hurt the bloc's economies.

"ALL THIS UNSEEMLY fuss in
Washington shows that there are in-
fluential forces who would like to return
the United States on the path of con-
frontation with socialist countries, not
taking into account the consequences of
such actions for the national interests of
the American people," the newspaper
wrote.

Compromise sought on
capital gains tax cut

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prese'ts
APPEARING MONDAY
doors open
and PINK FLAMINGOS at9:OOpm
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i Dine at the restaurant after 4:00 P.M. and
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1 ning. SUN.-THURS.1

WASHINGTON (AP)-Long-stalled
legislation for a $15 billion tax cut got a
boost yesterday as President Carter's
administration put out feelers for a
compromise on taxation of capital
gains.
Carter has denounced proposals to
ease the tax on profits from the sale of
assets held a year or longer as a give-
away to the rich that would be worth
only two bits to the average American.
THE TAX-WRITING House Ways
and Means Committee for weeks has
suspended work on tax legislation at the
administration's request, but scheduled
a session today with one of the plans
Carter objects toas its starting point.
Treasury Secretary W. Michael
Blumenthal began a last-ditch effort
late Tuesday with a round of
discussions involving key committee
members. He was described as still
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Thnrsday, July 20,i978
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wanting to ward off across-the-board
slashes in the capital gains tax.
House Speaker Thomas O'Neill told
reporters yesterday the administration
had made some offers toward a com-
promise. A Treasury Department sour-
ce, however, said there were no com-
mitments, except that Blumenthal
would report back to Carter.
OTHER CONGRESSIONAL sources,
declining to be identified, said the prin-
cipal capital gains tax modifications
discussed Tuesday included ways to
encourage investment in new and risky
ventures; relief for persons selling
residences that had acquire inflated
values; arrangements by which a per-
son selling a business could reinvest the
proceeds in another without incurring
heavy taxes, and possibly some
revision of maximum capital gains tax
rates.
At the White House, Carter's press
secretary, Jody Powell; said of the
reported discussions:
"The president has authorized no one
to commit him to any sort of -com-
promise or agreement in this area.
"He had.., allowed the secretary of
the Treasury to engage in discussions,