Secretary of State Cyrus Vance said today that the U.S. would deal with any Palestinian Arabs about the future of the West Bank or Gaza Strip regardless of their political leanings provided that they live in those areas.
However, he reiterated under questioning by members of the House Foreign Affairs Committee, that except for such matters as the security of the U.S. Embassy personnel in Beirut, the U.S. would not deal with the Palestine Liberation Organization until it accepts Security Council Resolution 242 and recognizes Israel’s right to exist.
Vance appeared to supercede the testimony given by Harold Saunders, Assistant Secretary of State for Near East and South Asian Affairs, who told the same committee two weeks ago that the U.S. could have “informal” contacts with the PLO in the peace process without violating the U.S. agreement with Israel. Vance said “We are free to do what is in the interests of the U.S. but we will always consult with Israel.” Israel’s position is that if the U.S. has contacts with the PLO it would be violating the letter and spirit of the second Sinai interim agreement of 1975 which contains the prescribed two conditions. Vance and Defense Secretary Harold Brown testified in support of the authorization legislation for $3 billion in aid to Israel and $1.8 billion for Egypt stemming from the Egyptian-Israeli peace treaty. The measure will be voted on by the Committee tomorrow and sent to the House. The Senate Foreign Relations Committee has already adopted the measure.
Rep. Gerry Studds (D.Mass.), calling for U.S. action to penalize Israel for building new settlements on the West Bank, asked Vance if he would approve a reduction of $35 million in the appropriation for Israel. “I would want to reflect on that,” Vance replied. The $35 million is understood to be the cost of building two new settlements on the West Bank recently approved by the Israeli Cabinet.
REJECTS CHANGE IN AID PACKAGE
Vance, who said the exchange of treaty ratification instruments between Israel and Egypt in Sinai two weeks ago means “the era of bloodshed is over ” and “a new era of peaceful cooperation can lie ahead, ” refused to accept any changes in the aid package. Israel has sought easier terms on the U.S. aid. While it will receive $800 million in the form of a grant, the remainder will be a loan repayable at the current high market interest rates.
The Secretary of State told Committee chairman Clement Zablocki (D. Wisc.) that “a change in the funding is not necessary. ” But he said, “we will review” the situation annually and report to Congress. That is the position of the Senate Committee. Vance said the Israeli government estimates the “direct cost of withdrawal” from Sinai at roughly $4 billion. Thus the U.S. support will fall short of meeting their costs by $1 billion.
With respect to the U.S.-Israeli memorandum of agreement on possible violations of the Egyptian-Israeli peace treaty, Brown testified that the U.S. policy of “helping Israel help itself does not absolve the U.S. from maintaining a watchful attitude toward the security of Israel. ” Asked if that meant U.S. forces would enter the area, the Defense Secretary replied, “I would not rule out use” of military forces in defense of U.S. “vital interests.”
ISSUE OF TALKS WITH PALESTINIANS
On the issue of talks with Palestinians, Vance emphasized that “we are free to discuss with the people of the West Bank — for example, mayors — without regard to what their politics may be, as long as they are residents of the West Bank and Gaza.”
When pressed about “informal contacts” with the PLO, he replied, “If people are residents of the West Bank, we are prepared to discuss the peace process with them regardless of their politics.” However, he told Rep. Lester Wolff (D. NY) that the U.S. might talk with a West Bank mayor “who may have PLO leanings” but “not with the PLO as such.”
When Rep. Paul Findley (R. Ill.), a supporter of the Palestinians, asked about Vance’s assertion that “we are free to do what is in the interests of the U.S.,” the Secretary replied, “As a matter allow, this is correct but I have spelled out what I meant.” Vance said the U.S. knows about the PLO position through discussions with Syria and Lebanon.
Findley asked if “direct talks would not be better, ” and Vance replied “not necessarily.” When Findley pressed as to whether “you are satisfied with the present circumstances, ” the Secretary replied, “Under our commitments that we have made we are doing the best we can.”
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