Oil to Israel Under Discussion

Israeli and American energy specialists are to continue their discussions here on the supply and pricing problems connected with Egypt’s pledge to sell oil to Israel and the U.S. commitment to keep Israel supplied should it be unable to obtain oil elsewhere.

The discussions began last week, following Egypt’s reported notification to Israel that it would sell oil at the “spot market” prices which are usually far higher than contractual rates. Israel is seeking a contract with stable prices. It is reported that two million ### of Egyptian oil annually are involved.

Premier Menachem Begin wrote to President Carter last week about the oil problem, including a “fair price” for oil. But the White House has not yet publicly reacted to the letter. State Department spokesman Hodding Carter said today that “It is a White House thing” when asked about Begin’s letter. American and Israeli sources said that the current U.S.-Israeli talks involve positions of both Egypt and the U.S. on oil supplies.

The State Department confirmed, however, that Israel has not asked the U.S. for oil under the American commitment related to the Israeli-Egyptian peace treaty. These discussions are connected to the mechanics of determining prices and supply.

ISSUE OF THE MONITORING TREATY

Meanwhile, the issue of the monitoring treaty compliance in Sinai during Israel’s with-drawal from that territory is also under examination. Israel’s Ambassador to the U.S., Ephraim Evron, was to meet with State Department officials late today on Sunday’s decision by the Israel Cabinet.

The Cabinet approved “in principle” the monitoring agreement reached in Washington last month but only as an interim measure and demanded that the U.S. create a multi-national peace-keeping force as envisioned in the Israeli-Egyptian peace treaty. The U.S. still supports the United Nations Truce Supervisory Organization as a substitute for a multi-national force.