The Virginian-Pilot
                               THE LEDGER-STAR 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Monday, October 17, 1994               TAG: 9410170222
SECTION: FRONT                    PAGE: A1   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: AMMAN, JORDAN                      LENGTH: Short :   36 lines

ISRAEL, JORDAN MAKE PEACE

King Hussein of Jordan and Israeli Prime Minister Yitzhak Rabin initialed a draft peace treaty today after settling longstanding differences on water rights and border disputes.

The accord was reached after the two heads of state led overnight negotiations.

It came after a difficult week for Mideast peace talks. Israel suspended talks with the PLO after Islamic militants based in the Gaza Strip kidnapped an Israeli soldier. The soldier was killed by his captors Friday after Israeli commandos stormed their hideout, but talks are to resume Tuesday in Cairo.

Israel and Jordan declared an end to 46 years of belligerency on July 25, and since that time have been working to resolve disputes that stood in the way of a full-fledged peace treaty.

Today, Hussein said the treaty heralded a new era. ``Hopefully, it is a fresh beginning and a fresh start,'' he said before the signing ceremony.

Rabin said that ``this is a historically unique moment.''

``I have no doubt that this day is a historic road sign in the relations of the two peoples,'' he said.

A treaty will make Jordan the second Arab country formally at peace with Israel. Egypt became the first in 1979, and suffered years of ostracism by other Arab countries for its historic move. President Anwar Sadat paid with his life after Islamic militants gunned him down in 1981. by CNB