Breakthrough on Oil Talks

Defense Minister Ezer Weizman announced in Cairo today that there was a breakthrough in the Israeli-Egyptian talks over the supply of Sinai oil to Israel but did not elaborate. Weizman spoke to reporters after a meeting with President Anwar Sadat, who, smiling at his side, said there were no unsurmountable problems. The Israeli defense chief then went into another meeting with Prime Minister Mustapha Khalil with whom he had a long talk last night, presumably on the oil question.

The major point at issue is the price Israel will be required to pay for the two million tons of oil per year that Egypt has agreed to supply. The Egyptians have insisted on at least $32 a barrel, the spot market price in Rotterdam. The Israelis are willing to pay the price set by the Organization of Petroleum Exporting Countries (OPEC) which is $23.50 a barrel. Israel is due to evacuate the last Sinai oil fields at the end of this month.

Weizman flew to Cairo yesterday to resume his talks with Egyptian officials that began 10 days ago. He was supposed to return by this afternoon but postponed his departure until evening. He was joined in Cairo today by Energy Minister Yitzhak Modai. According to an official announcement, Modai was sent to assist him.

Observers believe he was sent to counter press reports this morning that Premier Menachem Begin had removed him from the oil negotiations. Weizman was given the task of bargaining with the Egyptians because of his good personal relations with Sadat.

What success he had will not be known until his return. Speaking for the government in the Knesset today, Minister-Without-Portfolio Moshe Nissim said the Cabinet would hear reports from Weizman and Modai on their Cairo mission and would take appropriate decisions.