Another Impasse on Autonomy

Egypt and Israel remain far apart on the Palestinian issue

We are not retreating. We are leaving in the hope of peace." So read a large orange sign at Israel's Sinai military base of Refidim. Twelve years after its forces had occupied the Sinai and ten months after the signing of the Camp David agreement, Israel removed the last of its troops and weaponry from the western two-thirds of the desert peninsula. For the next two years, until the final third of Sinai is returned to Egyptian control, the Israelis will be stationed east of the Ras Muhammad-El Arish interim line. No longer will Israeli forces command the strategic desert passes of Mitla and Giddi, which became the graveyard of Egyptian armor in 1967. With memories of the Six-Day War in mind, Israel's Chief of Staff, General Rafael Eitan, told his troops last week that "it took nothing less than peace to make us give up the Sinai."

The brief withdrawal ceremony at Refidim marked the beginning of a new but uncertain phase in the changing relationship between Israel and Egypt. Last weekend, in accordance with the timetable agreed upon at Camp David, formal diplomatic relations between the two nations were established. Ambassadors will not be exchanged for another month, although both countries have already named them: Saad Mortada will represent Egypt in Tel Aviv, and Eliahu Ben Elissar will be Israel's man in Cairo. Telephone, telex and postal links were also opened, and direct air service between Tel Aviv and Cairo is set to begin soon.

The Israelis jubilantly welcomed the establishment of ties. In fact, they have already found a future embassy site on the residential island of Zamalek in the Nile; Well aware that normalization is opposed by nearly the entire Arab world, the Egyptians seemed almost embarrassed by the proceedings. They have not yet begun to search for an embassy location in Tel Aviv. And, although the land border between the two countries is now officially open, the Egyptians intend to limit sharply the number of Israeli tourists allowed to drive to Cairo via Sinai.

The problem is a deadlock in the negotiations over autonomy for the 1.1 million Palestinian Arabs of the Israeli-occupied West Bank and Gaza. Resolution of the issue is regarded by Washington as a matter of the highest importance. Moderate Arab leaders have warned the Carter Administration that unless the problem is solved, the U.S. will be unable to offset Soviet influence in the region by forming strong and unambiguous alliances with the Muslim Middle East.

Two weeks ago, the Israelis offered a 26-page proposal for the West Bank and Gaza. It calls for the creation of an eleven-member Palestinian council that would handle education, housing, social welfare and religious affairs. But the Israelis would retain control over such vital areas as use of public land, water resources, internal security, Jewish civilian settlement, fuel and power, and currency.

Small wonder that the Egyptians immediately rejected the Israeli plan as unacceptable. Instead, Cairo proposed a Palestinian council of 80 to 100 members with full legislative, executive and judicial authority over the territories. Israel's chief negotiator, hard-line Interior Minister Yosef Burg, complained that this amounted to a "Palestinian parliament." He told TIME: "The Egyptians look upon autonomy as merely a corridor leading to Palestinian statehood. We are very allergic to anything that smacks of statehood."

Despite the impasse, talks will resume this week in Herzlia, a seaside suburb of Tel Aviv. At midweek the regular negotiators will be joined by Sol Linowitz, President Carter's special envoy to the Middle East. Linowitz is also scheduled to see Sadat, Jordan's King Hussein and Saudi leaders during the course of the trip. The Israelis have been nervous about rumors that the Carter Administration is determined to accelerate the pace of the autonomy talks and reach an agreement that would be acceptable to the Palestinians, Jordanians and Saudis. "Israel is ready to pay a price for peace," declared Burg, "but Israel is not prepared to be the price of peace." Last week the White House assured the Israelis that it was still opposed to the creation of an independent state in the West Bank and Gaza.

There were also rumors that Jordan's Hussein was changing his strategy and was now prepared to take on the task of administering the West Bank's self-government, as called for by the Camp David accords. Hussein is unquestionably uneasy about Sadat's suggestion that one way to break the deadlock would be to start by establishing self-rule in Gaza under Egyptian administration. To offset Cairo's influence in Gaza, Hussein has stepped up his country's activities in the West Bank. Among other things, the Jordanians have conducted a census in the territory, announced plans to open passport offices there for the first time in twelve years, and dispensed aid to Arab villages. But Hussein's real goal is probably unchanged: the creation of a united kingdom, of both the East and West Banks, under his sovereignty. Most diplomats believe he would not defy the Palestine Liberation Organization by joining the autonomy talks at this stage. He would, however, welcome the chance to negotiate with a future Israeli government to regain control of the West Bank.

The Israelis are correct in thinking that Jimmy Carter is determined to make headway this year on the Palestinian issue. "There is a countdown to May," says an aide to Israeli Premier Menachem Begin. Translation: If Carter has emerged by that time as the all-but-certain Democratic presidential candidate, he will be in a position to devote a lot of time this summer to the Middle East. Both the Israelis and the Egyptians believe that Carter would invite Sadat and Begin to another summit at that time for a round of intensive--and very tough--negotiations on the autonomy impasse.

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