ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, January 31, 1994                   TAG: 9401310102
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A1   EDITION: METRO 
SOURCE: From The Associated Press and the Los Angeles Times
DATELINE: DAVOS, SWITZERLAND                                LENGTH: Medium


ISRAEL-PLO PEACE DEAL PREDICTED

Israel and the Palestine Liberation Organization came close to an agreement Sunday that would have cleared the way to put their accord on Palestinian self-government into effect.

PLO Chairman Yasser Arafat said he expected a final agreement "very soon," perhaps next week, for Israeli withdrawal from the Gaza Strip and Jericho.

Israeli Foreign Minister Shimon Peres played down remaining differences and said he was more optimistic than ever before.

"There had been very complicated problems," Peres said. "We were able to negotiate many of them, maybe most of them."

He added that there is "more than a fair chance we will complete our work next week."

Israeli sources said the outstanding issues related to technical border questions. The sources, who spoke on condition of anonymity, said an outline agreement had been reached on how Jericho and other occupied lands would come under Palestinian autonomy and on security questions - key problems that had stymied the talks.

Peres and Arafat were in Davos, Switzerland, to attend a privately organized gathering of political and business leaders from around the world.

"We are on our way to bypass all the obstacles which had been raised in the last weeks . . . to have very soon, very soon the final agreement to start directly the implementation of the peace agreements," Arafat told the World Economic Forum.

He said he would meet with Peres in a week in Cairo to complete an agreement on Israeli withdrawal.

Among major issues are security arrangements for the new Palestinian areas that will meet Israeli demands for keeping out terrorists while not infringing on the Palestinian sense of sovereignty.

Peres told Israeli television that both sides made sacrifices. "With all the concessions, each side was faithful to itself," he said.

He said the Palestinians "gave in on security issues." Israel has demanded it must have the powers to keep terrorists from crossing borders into the Gaza Strip and Egypt.

The issue was resolved by an agreement that would keep Israeli agents from being visible at border crossings, Egyptian Foreign Minister Amr Moussa said, apparently referring to suggestions that they would be behind one-way mirrors.

The draft agreement under discussion Sunday also resolves questions about the borders of the Jericho District, according to Israeli and PLO sources, and provides for the protection of Jewish settlers who remain in the Gaza Strip.



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