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President Valery Giscard d’Estaing of France and Chancellor Helmut Schmidt will hold talks on the Arab-Israeli conflict during the Franco-German consultations in Bonn later this week. It is not known yet whether the two leaders will produce a statement on the issue. Giscard, currently on a State visit to West Germany, has repeatedly stressed the need for Europe to play an increased political role in world affairs. So far, he has not made any reference to the Middle East but observers here agree that both Paris and Bonn want to push West Europe to a much more active involvement in a solution of the Arab-Israeli conflict, According to informed sources here the government largely agrees with Giscard that the lock of a comprehensive solution to the Arab-Israeli conflict makes it more difficult for Europe to improve relations with the Moslem world and the oil producing Middle East countries.

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