Critical Showdown over Taba Issue

The 10-man Inner Cabinet is scheduled to meet tomorrow for what both Labor and Likud sources said would be a “critical” showdown over a proposed formula to resolve Israel’s border dispute with Egypt over Taba.

Labor sources quoted Premier Shimon Peres as declaring that the outcome of the meeting would be crucial to future relations with Egypt or the fate of the Labor-Likud unity coalition government. They said the Premier was determined to get agreement on the formula which would combine elements of arbitration, as demanded by Egypt and conciliation, insisted upon by Likud.

The Inner Cabinet–five Labor and five Likud ministers–ended their last meeting on the issue in deadlock two months ago. Since then, Israeli and Egyptian negotiating teams came up with a formula Peres says would satisfy Cairo and the concerns expressed by Foreign Minister Yitzhak Shamir, the Likud leader.

Peres is convinced that resolution of the Taba issue will result in improved relations with Egypt and the resolution of all other bilateral issues between the two countries.

Peres and Shamir met privately Monday night. The Likud Knesset caucus indicated yesterday that if Shamir approved the latest moves, he would have the support of his colleagues in the Knesset. But Likud hardliners continued to oppose any concessions to Egypt.

Likud ministers caucused this evening. Party sources said the outcome was inconclusive. At least some Likud leaders continue to feel that the accords reached with Egypt so far in the border dispute were inadequate. Labor ministers met with Peres at his home here late tonight.