Israeli plan denounced by U.S.

Press, 7 September 1982, Page 1

Israeli plan denounced by U.S.

NZPA-Reuter Washington The United States has denounced Israel’s plan to establish new settlements in the occupied territories, saying it regards the move as a direct attempt to undermine President Reagan’s Middle East, peace initiatives. The Israeli move seemed certain to heighten the tense relations between the Begin Government and Washington. The United States Secretary of State, Mr Shultz, yesterday ruled out any threat to cut off aid to Israel as a means of forcing it to accept Mr Reagan's plan. The President's proposals call for a halt to Israeli settlement of the West Bank and Gaza Strip, and for Palestinian self-government there in association with Jordan.

However Mr Shultz suggested that shipments of Fl 6 fighters to Israel could be held up even longer. Yesterday’s Israeli decision to set up four new settlements was a big rebuff to the Reagan Administration and came only three days after the Israeli Cabinet's categoric rejection of the President's plan.

Within hours of the Jerusalem announcement, the White House condemned what it called the incom-

prehensibility of the Israeli

move. It said it not only eroded the confidence of all at a time when progress towards peace moves seemed possible. but .cast doubt on earlier Israeli commitments to United Nations resolutions on the Middle East. A committee of Israeli Ministers voted yesterday to put up four new outposts in the areas of the Arab West Bank and Gaza captured in the 1967 Middle East war. Two other Israeli points, which until now had been combined farming-military posts, would be converted to civilian settlements, Israeli officials said. The Deputy Minister of Agriculture, Mr Michael Dekel, said the move to build the new outposts was part of a government plan adopted some time ago. He said it was unrelated to President Reagan’s call for a freeze of Israel’s controversial settlement policy. About 25,000 Israelis nowlive in 103 settlements in the occupied areas and an Israeli official said yesterday the new communities were part of a master plan to settle 100,000 Israelis there.

In a letter released in Jerusalem, Mr Begin told President Reagan that his proposals, which included self-government for the 1.3 million Palestinians in the occupied territories in close association with Jordan, would result in a Palestinian State, Mr Begin said that although Mr Reagan had declared he would not support, the creation of a Palestinian

State, such a State would arise the day the Arab areas were given over to Jordanian jurisdiction. “Then, in no time, we and yOu will have a Soviet base in the heart of the Middle East,” Mr Begin said. “Under no circumstances shall we accept such a possibility even arising which will endanger our existence.” He appealed to Mr Reagan not to weaken or put Israel in jeopardy which he said * would be the “inevitable con- /. sequence” bf the President's proposals; .