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very basis of the Ostpolitik and holds that Soviet actions in the Middle East pose a potential threat to Western Europe, a theory the Bonn Government refuses to buy, the circles observed. Furthermore, while Israel accepts West Germany’s assurances that she will not subordinate herself to French political interests in the Common Market, Israel has not realized its hope to make Bonn a pillar against French efforts to impose its Mideast policies on all Common Market member nations. Scheel’s spokesman stressed here that “the political consultations within the Market will continue so that we can all speak with one voice on foreign policy.” Israel fears that the French attitude, which it regards as pro-Arab, will permeate the Common Market nations, Nevertheless, School put many Israelis at ease when he stated that “The Federal Republic does not believe that a total withdrawal of Israel from all occupied territories is a pre-requisite of peace in the region.” He declined however to be drawn into a statement on Israel’s future borders saying, “I find that a public discussion of this question by a representative of the Federal Republic is not indicated. We do not want to assume the role of arbiters.”

Referring to the Mideast document prepared last May by Common Market experts and fostered by France, School said he saw no contradiction between the desire of his government to constantly improve its relations with Israel on the one hand and a reconciliation with France on the other. The document urges Israel’s total withdrawal to its pre-June, 1987 borders and calls for the internationalization of Jerusalem, Scheel referred to German development aid to Israel, He said that in addition to the current annual loan of $35 million, additional loans were discussed during his stay in Israel and referred to the Bonn Finance Ministry for further action. He added pointedly, that “the Federal Republic is in a very difficult budgetary situation.”

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