Israel Views Jordan’s Decision As a Stunning Blow to Reagan

There was no official reaction here today to Jordan’s announcement that it has dropped its efforts to negotiate with Israel on behalf of the Palestinians because of its failure to obtain approval from the Palestine Liberation Organization.

But there was barely concealed relief in government circles which viewed the Jordanian decision as a stunning blow to President Reagan’s September I peace initiative which called for a self-governing Palestinian “entity” in association with Jordan and urged a freeze of Israel’s settlement activity on the West Bank.

According to those circles, the Reagan plan has lapsed — if it has not collapsed altogether — and there were confident predictions that the severely strained relations between Washington and Jerusalem will improve because the U.S., having failed to persuade Jordan to enter negotiations, will now ease up its pressure on Israel.

(President Reagan blamed “some radical elements of the PLO” yesterday for the Jordanian demarche but said he was still “very hopeful” that King Hussein somehow will join the peace talks on behalf of moderate Palestinians. Nevertheless, he acknowledged that the Jordanian statement was “an impediment in our search for peace.” See separate story.)

WE TOLD YOU SO’ ATTITUDE

There were hints of a “we told you so” attitude toward Washington in the private reactions of some top Israeli policy-makers. The Prime Ministers Office let it be known this morning that Premier Menachem Begin was “not surprised” by the Jordanian position because he had never put much stock in the talks between King Hussein and PLO chief Yasir Arafat.

Begin was quoted as telling the visiting Mayor of Brussels that Israel was under no illusions or delusions about the PLO’s ultimate stand. He was also reported to have said that the U.S. was taken by surprise by the Jordanian decision.

Only hours before the announcement from Amman yesterday, top Israeli officials were reacting furiously to the Reagan Administration’s promise to Hussein that it would prevail on Israel to freeze its settlement building in the occupied territories. Commenting today on the latest developments, Justice Minister Moshe Nissim said that from the outset, Israel regarded Reagan’s peace initiative as ill conceived and ill timed.

He said it had “planted hopes” in Arab minds that Israel could be brought to give up virtually the whole of Judaea and Samaria” and “these hopes were futile.”

Communications Minister Mordechai Zipori said Hussein’s decision showed once again that he did not deserve the reputation of a “wise monarch” bestowed on him by the media here and abroad.

Government sources said they expect relations with the U.S. to take an upturn once negotiations with Lebanon are completed and arrangements are made for the withdrawal of all foreign forces from the country. According to those sources, an agreement is near.

The Israeli, Lebanese and U.S. delegations met in Netanya today to continue their talks. Israeli sources said much remained to be done but stressed the determination of all parties to hammer out an agreement. Meanwhile, U.S. special envoy Philip Habib returned today to Jerusalem from Washington and is scheduled to meet with Israeli officials this week in another effort to bridge the gap in the negotiations between Israel and Lebanon.