Political circles here maintained the guarded hope today that the expulsion of Israel Ambassador Arieh Levavi from Buenos Aires marked the end of the dispute between Argentina and Israel over the capture of Adolf Eichmann and that a slow improvement in relations between the two countries could be initiated.
The cautious optimism, which followed a cabinet meeting yesterday in which Foreign Minister Golda Meir reported on the latest developments in the Argentine-Israel dispute. is based on the fact that talks are now underway in Buenos Aires between Shabtai Rosenne, legal adviser to the Foreign Ministry here and Argentine Government officials. Mr, Rosenne, who arrived in Buenos Aires last week-end, is reportedly trying to negotiate a formula acceptable to both sides.
Israel is reconciled to the fact, however, that even if agreement is reached on a mutually acceptable formula, several months are likely to elapse before the cordial relations are resumed.
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