Vice Premier and Foreign Minister Shimon Peres returned from a one week trip to Europe Wednesday to confront a new rift between his Labor Party and its Likud coalition partners over statements he made abroad indicating that Israel was prepared to support an international peace conference on the Middle East, if certain firm conditions were met.
Peres, who visited Paris, London and Brussels, told reporters at Ben Gurion Airport that whatever he said overseas conformed with national policy approved by the Knesset, including its Likud faction. He said Premier Yitzhak Shamir, the Likud leader, was fully aware before he left of what he would say on the subject of the Middle East peace process and had raised no objections.
Peres has also come under fire in Likud circles for alleged impropriety when he accepted a “gold watch” from a businessman, David Balas, as a birthday present in August, 1984, shortly before he took office as Premier. Balas is presently on trial for allegedly defrauding the kibbutz movement of some $20 million.
The Likud critics imply that the watch was a “bribe” and claim that Balas illegally made a $600,000 contribution to the Labor Party’s election campaign.
SHAMIR TRYING TO DEFUSE THE SITUATION
The attacks on Peres are coming mainly from Likud back-benchers and Shamir is reportedly trying to defuse the situation. The Labor and Likud Knesset factions and the leadership of both parties were due to meet Wednesday night to discuss the growing coalition dispute. The Labor faction, which met in the afternoon, said the unity coalition should be dissolved. They assailed Likud for attacking the Foreign Minister while he was abroad.
Peres dismissed Likud charges as “demagogy.” He said the campaign contribution from Balas was reported to the State Comptroller in accordance with the law. He acknowledged that he received a watch from the businessman, “and I don’t regard that as any crime,” he said.
Members of the Herut young guard filed complaints with the police fraud squad over Balas’ contributions to the Labor Party campaign fund and to Ezer Weizman’s Yahad Party which is aligned with Labor — and over the watch given Peres. The police have yet to decide whether to investigate the charges or seek an opinion from the Attorney General.
PERES EXPLAINS HIS PEACE TALKS’ POSITION
Meanwhile, Peres explained that he had agreed to Palestinian participation in a Jordanian delegation to peace talks provided the Palestinians were not known members of the Palestine Liberation Organization and opposed terrorism.
He noted that he has always maintained that an international peace conference could serve as the framework for direct negotiations between Israel and Jordan and other Arab states. He said Israel would accept Soviet participation only if Moscow lifted emigration restrictions on Soviet Jews and moved to restore diplomatic relations with Israel.
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