Mr. Peres Goes to Washington

By William E. Smith

Where he finds a "true friend" in the Rose Garden

Basically, people look to politics for drama, for a kill, for a bullfight," Shimon Peres once observed during his long years as Israel's opposition leader. "I'm not sure my temperament or my conscience is made for that." Last week, having finally made it to the center of the ring, Israel's new Prime Minister was working hard to deal with his country's pressing economic and military problems. During a whirlwind trip to Washington, undertaken only three weeks after he became the leader of Israel's government of national unity, Peres visited President Reagan and other Administration and congressional leaders, and was cheered by what he found.

Though the Prime Minister had insisted that he was not going to the U.S. with "a shopping basket or a beggar's pack," it was obvious that his country was in desperate need of assistance. Inflation is running at almost 500%, and foreign reserves are dangerously low. Accordingly, a sympathetic President Reagan promised Peres that the U.S. would accelerate the delivery of this year's $1.2 billion in economic aid, paying the entire sum immediately instead of stretching it out through the usual quarterly installments. That will raise Israel's reserves to nearly $3 billion, thereby reducing fears in financial circles that the country has become a serious lending risk.

In addition, Reagan and Peres announced the formation of a special committee made up of government and business leaders from their countries to find ways of directing future U.S. aid toward bringing about a long-range Israeli economic recovery, with emphasis on the development of high-technology industries. The two leaders reaffirmed their intention to establish a "free trade zone" between the U.S. and Israel, a plan that the U.S. Congress has also approved. This, Peres hopes, will boost Israel's annual export earnings from $11 billion to $19 billion by 1989. The device is politically ingenious: it allows Reagan to help Israel immediately without simultaneously adding to the burgeoning federal deficit.

Both men were lavish in their mutual praise. Emerging on the portico facing the Rose Garden, a beaming Reagan declared, "Our ties remain unbreakable." He said that in the short time Peres has been in office he has taken "bold and wide-ranging steps" to improve the overheated Israeli economy. Those steps include a cut of $1 billion from Israel's $23 billion budget, a ban on the import of luxury goods like cars and major appliances, and a clampdown on the amount of money Israelis may spend abroad (from $2,000 to $1,000). Replied Peres: "I found in the White House a true friend of Israel. We are determined to face our economic problems head-on." He added that the American friendship was "a source of strength and inspiration to me."

The visit had political benefits for the two leaders. It demonstrated to Peres' countrymen that the U.S. is prepared to deal with their new Prime Minister. For Reagan, it strengthened his reputation as a friend of Israel. In fact, there were reports that it was the White House staff, not the Israelis, who had insisted that the visit be held at this crucial pre-election moment.

Peres also met with Secretary of State George Shultz, Presidential Candidate Walter Mondale, congressional leaders and representatives of the business community and the press. He repeated his government's determination to "bring our boys home" from southern Lebanon, probably within six to nine months, but only under conditions that would assure the security of northern Israel. Peres advocated an expansion of the role in southern Lebanon of the United Nations peace-keeping force, whose mandate was renewed by the U.N. Security Council last week. He also said that he wants the region immediately to the north of the Israeli border to be guarded by the South Lebanon Army, the mainly Christian, Israeli-supported militia now headed by General Antoine Lahd. Since the Lebanese government opposes such a role for the Lahd force, Peres suggested that Israel might be content to have the group incorporated into the regular Lebanese Army. The Lebanese government is not very enthusiastic about that idea either, but might accept it as the price of an Israeli withdrawal.

In contrast to the previous Israeli government, which pressed for a simultaneous withdrawal of Israeli and Syrian forces from Lebanon, Peres said he does not expect Syria's 40,000 troops to pull out completely once the Israelis are gone. He did insist that they refrain from expanding their position, while also trying to prevent Palestine Liberation Organization guerrillas from returning to the border region. Said Peres: "We do not look for any favors from the Syrian side. It is up to them to decide whether they want to wake up every morning and find our forces against theirs only 16 miles from Damascus."

As Peres visited Washington and New York City, Egyptian President Hosni Mubarak was paying a courtesy call on King Hussein of Jordan to thank him for renewing diplomatic ties with Egypt last month. Like most other Arab states, Jordan broke relations with Cairo in 1979 after the late Anwar Sadat signed a peace treaty with Israel. Since succeeding Sadat in 1981, Mubarak has worked hard to gain Arab approbation, giving Iraq strong backing in its war against Iran. Hussein decided to risk the wrath of Syria, Libya and other radical Arab states by restoring Jordan's formal ties with Egypt. His thought is that this may lead Iraq (which in the meantime is rumored to be interested in restoring relations with the U.S. after a 17-year break) to follow suit. Although the cautious Jordanian King's policies are slowly shifting, there was still no sign last week that, as Peres and the U.S. had hoped, Hussein would soon join Egypt, the U.S. and Israel in negotiations toward a Middle East settlement.

-By William E. Smith. Reported by Marsh Clark with Peres and Barrett Seaman/Washington

With reporting by Marsh Clark, Peres, Barrett Seaman