Cabinet Approves U.S. Proposals on Last Two Remaining Issues Sinai Oil and Phased Withdrawal

The Cabinet today approved U.S. proposals on the last two outstanding issues in the peace negotiations. By a vote of 15 in favor and two not taking part–Transportation Minister Haim Landau and Zevulun Hammer, the Education Minister the ministers gave endorsement to what Premier Menachem Begin had in effect consented in his breakfast meeting yesterday with President Carter in Jerusalem. Begin told reporters he had immediately telephoned the Cabinet decision to Carter–who had been “very pleased” to receive it. (See separate story from Washington.)

The decision now opens the way to a treaty signing, possibly next week in Washington, and then in Cairo and Jerusalem. Egyptian Premier Mustapha Khalil was quoted today as saying the Washington ceremony might take place next Thursday or Friday.

The Cabinet devoted its seven-hour session solely to the two remaining issues — the Sinai oil and the “phased withdrawal.” The withdrawal issue deals with Israel undertaking in advance to withdraw from EI Arish within three months and from other areas of Sinai at fixed dates during the nine-month interim withdrawal phase set by the Comp David accords. In return for this, it is hoped, President Anwar Sadat would restore his original agreement to exchange ambassadors once that interim withdrawal was completed.

Meanwhile, unconfirmed reports in Jerusalem said Egypt had yesterday withdrawal its demand for a ” Liaison” presence in the Gaza Strip, where the first stage of the autonomy is to be implemented. This had been one of the toughest issues under discussion during Carter’s trip. It was not clear whether Egypt had forgone any kind of presence in the Strip.

TREATY PACKAGE’ TO BE DEBATED SUNDAY

There is to be another Cabinet session Sunday on the “treaty package as a whole,” and, presumably, at this session the ministers will have to address themselves to the issue of the nature of the proposed Palestinian autonomy.

There is a Cabinet decision of some weeks ago to hold a debate on the autonomy before the treaty is signed. Landau and the National Religious Party ministers have indicated that they will insist this decision is implemented and that the Cabinet hold a full-scale debate on the autonomy.

Political observers do not expect, nevertheless, that such a debate at this stage, could seriously endanger the progress of the peace process to its final consummation in the three signing ceremonies scheduled for next week or the week after.

Begin is scheduled to go to Cairo to sign with President Sadat the Arabic version. Sadat is then due to come to Jerusalem to sign together with Begin the Hebrew version, and both officials are then to go to Washington to sign the English version with Carter co-signing as the witness. It is understood that should there be any is agreement between Israel and Egypt on subsequent interpretations of the treaty elements, the English version will prevail.

The Premier refused to answer questions after the Cabinet meeting, explaining good-naturedly that he had “got a cold” and had been ordered by his doctors to go home and rest. Begin’s cold was already apparent in his Israeli and U.S. TV interviews last night. But observers said he seemed in excellent health and spirits despite his clogged nasal passages. Begin himself pointed out that such colds were a hazard of the presently changeable Jerusalem weather.