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Page 14
PASTOR GENERAL'S REPORT, February 20, 1981
"PLO officials are also unhappy about details of the draft proposals,
although they welcome the prospect of Europe taking an independent stand
in the Middle East. They particularly object to a reported proposal for
a referendum among Palestinians [including those living outside the re­
gion; there are an estimated 4 million Palestinians worldwide]. The CEC
discussion document is said to state that a choice should be given be­
tween complete independence, federation with Jordan and federation with
Israel. PLO sources said a referendum would undermine the organization's
claim to be the sole representative of the Palestinian people. Federation
with Israel is, in any case, out of the question.
''The mention of Palestinian federation with Jordan is a sop to the new
U.S. Administration, which appears set on bringing King Hussein into the
Camp David peace process with a view to eventually placing the occupied
territories under his sovereignty, the sources said.
"The PLO is also unhappy about the possible amendment of frontiers in the
occupied West Bank and Gaza Strip in the event of an Israeli withdrawal.
They point to the number of apparently permanent Jewish settlements set
up in the occupied territories in recent years and allege Israeli policy
is to hold on to land and water supplies, while dumping the Palestinian
population in the towns on to the Jordanians....
"PLO sources...also oppose any proposal that would demilitarize the future
Palestinian zone. Diplomatic sources say the European discussion document
foresees demilitarized zones, policed by the United Nations, between the
Palestinians and the Israelis and an international ban on arms sales to
all parties involved in a future peace agreement.
"The sources say the European proposal on the future status of Jerusalem
is that it should be an extra-territorial city administered by a religious
coalition. This runs�ounter to the Israeli contention that�he whole
city, both the Jewish West and the Arab East, is the eternal and undivided
capital of Israel....
''European political sources cite a number of reasons why Western Europe
is pressing for a Middle East solution with increasing urgency. The EEC
states want to stabliize their oil supply, and this would be disrupted by
renewed conflict in the Middle East. France, for example, relies on the
Persian Gulf fot' 80 per cent of its
011
needs. Western European policy
makers have also come to regard PLO leader Yasser Arafat as a moderate in
the Palestinian movement and fear that if progress is not made soon on the
diplomatic offensive to which he has committed himself, he will come under
intolerable pressure from radical hardliners within the movement.
"The new European authority contains little to endear itself to Israel.
The view from the Knesset is that Western Europe is giving way to the
Arabs for economic reasons. The cool reception given to the EEC initia­
tive by Israeli leaders indicates that attitudes in the Jewish state may
be the greatest stumbling block to its chances of success."
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