JIMMY CARTER J
__

March 26, 1990

Mr. Sanford Greenberg
600 New Hampshire Avenue, N.W.
Washington, D.C. 20037

To Sandy Greenberg

We have just returned from a productive trip to the Middle
East, the purpose of which was to learn as much as possible about
the peace process and economic situation there and to form some
plans that might be helpful in the future. We had a very full
schedule, but managed to see almost everyone on our list, with the
exceptions mentioned below.

In Egypt, we had an up-to-date briefing from PLO and Egyptian
government officials about the so-called Shamir-Baker- Mubarak plan
which, unfortunately, Prime Minister Shamir abandoned under
pressure from his Likud partners. President Mubarak is playing the
leading role now in putting together a representative and
acceptable delegation of about ten Palestinians from the occupied
territories who will meet in Cairo with an equivalent number of
Israelis. With the private knowledge but without the public
acknowledgment of Israeli leaders, this delegation is being
formulated with the full involvement of PLO officials. There is
still some disparity between the intentions of the two groups; the
Israelis seeing this as only a planning session for conducting
elections in the West Bank and Jordan; the Palestinians desiring
to discuss some more fundamental peace issues. A possible
compromise wiil be to let each side make opening statements of
their own devising, then move on to plan the election.

This process has been overshadowed by the failure of the
Israelis to agree on a simple question: can Palestinian deportees
or those with one of their dual addresses in East Jerusalem
participate? The national unity government fell on this question
while we were in Jordan, shortly before we arrived in Israel and,
as you know, Shimon Peres of Labor has now been designated to form
a new government.

THE CARTER CENTER + ONE COPENHILL - ATLANTA, GEORGIA 30307
Page 2

We found President Mubarak relaxed and pleased with his more
prominent role in the peace process plus his current leadership of
the Organization of African Unity. Detailed briefings from other
top officials were very helpful. Despite the return of their oil
wells, a healthy tourist industry, and heavy use of the Suez Canal,
the Egyptian economy is in an almost desperate condition. Cash
reserves are minimal, external debt very high, and there is a wide
disparity between Egypt and the IMF concerning what must be done
before loans can be rescheduled. A crucial concern is the burden
of repaying military loans from the United States, with interest
rates of up to 14% It is obvious that great benefits would come
from full cooperation with Israel on tourism, agricultural
development, and other economic projects, a path still very
difficult for Egypt to follow.

In Syria we found a poor but somewhat improved economy,
primarily because of the production of enough oil to meet domestic
needs and even to export a small quantity. To understand Syrian
policy, it is not necessary to meet with a large number of
officials, so Rosalynn and I spent more than seven hours with
President Assad, discussing quite frankly a wide range of issues
affecting the Middle East. He seemed healthier, in better spirits,
more relaxed, and patient about the peace process than when we were
there three years ago. He has minimal confidence that the planned
Israeli-Palestinian talks will amount to anything, but willing to
stand aloof, not interfere, and see what happens, waiting for an
international peace conference to make a substantive difference.
(This was a belief held by all the Arabs and a substantial portion
of the Israelis -- and by me.) Assad made it clear that under the
umbrella of an international conference he would be ready to
negotiate directly with Israel to resolve outstanding issues. Now
he is strongly supporting the implementation of the Taif agreement
for Lebanon, an agreement that was orchestrated by King Fahd with
the early help of the United States, and which will help to
establish a strong national authority. However, he feels that the
French, the Vatican, Iraq, and the Israelis are assisting the
Christian militia forces of Generals Aoun and Gea Gea, who are
opposing this potential solution to the Lebanese crisis.

We next had a brief but pleasant visit to Aqaba with some
snorkeling off the Egyptian Sinai coast, where it was interesting
to see the Egyptian flag over Taba and Pharaon Island -- the result
of the Israeli-Egyptian peace treaty that I helped to negotiate.
However, it was frustrating to see Aqaba and Eilat airports 3 miles

apart with the city limits touching, with not even a foot path
joining the two. We spent most of our time in Jordan analyzing the
economic benefits of a peaceful Middle East, which will be the
subject of our Carter Center conference late next November.
Jordan also has serious economic problems, many of which could be
substantially alleviated if they could have joint projects with
Syria, Israel, and Egypt. Tourism alone, with open borders, would
be a tremendous boost. Shipping, mining of phosphate and potash,
and the proper sharing and conservation of water all offer rich
dividends.
Page 3

Of special concern to all Arabs, and particularly Jordanians,
was the immigration of large numbers of Soviet Jews into Israel and
their settlement in the occupied territories. Maximum political
pressure is being exerted on the Soviet Union, the United States,
and European countries to reduce this threat to the West Bank and
Gaza as a future Palestinian homeland.

As luck would have it, our first luncheon in Jerusalem was
with President Herzog, who was busy meeting with one after another
of the 16 Knesset factions in preparing his decision to let one of
the two major parties make an attempt to form a government. We
then met with a large number of young and old members of the major
parties, scholars, West Bank and Gaza doctors, human rights
activists, church leaders, Palestinians, and economists, and
visited a center where incoming Jews from the Soviet Union and
Ethiopia are being received and prepared for life in Israel. It
was heart-warming to see the hope and anticipation of these
newcomers, but disturbing that a substantial number of them are
being settled in East Jerusalem, in areas beyond the pre-1967
Israeli boundaries. The Israelis do not consider this as part of
the occupied territories, and seem to have a "special program" to
encourage settlement there. We agreed with all Israeli leaders
that Jerusalem should remain a unified city. Well advised or not,
this is creating intense Arab pressure in the world community, and
may have the counterproductive effect of reducing the number of
Soviet Jews who will come to Israel, as Soviet, U.S., and European
leaders respond to Arab concerns.

Despite contrary beliefs often expressed among Israelis,
Palestinian leaders from all walks of life seem to be almost
unanimous in supporting the intifada and expressing their loyalty
to the PLO and Yasir Arafat as their sole legitimate representative
and spokesman. They are prepared to participate in the Baker plan,
however, provided the chosen group has the tacit blessing of the
PLO.

We discussed reports of human rights abuses with Israeli
military and civilian authorities who administer the occupied
territories, and were gratified at some of their responses. For
instance, they promised to cease removing mothers and children from
their homes in the West Bank and Gaza and deporting them to Jordan,
and to let the 251 documented cases be resolved by
permitting families to be reunited.

Rightly or wrongly, Palestinian leaders are convinced that
there is a general policy of encouraging emigration from the
occupied territories by making life unpleasant for Arabs and
insuring that vital services to West Bank and Gaza communities are
increasingly dependent on Israeli sources. Many Israelis are
distressed with these policies, and some asked us to continue to
try to correct these problems, but it is obvious that a
comprehensive peace settlement is the only sure path to this goal.
Page 4

Our final stop in Israel was at Tel Aviv’ university, where
superb work is being done to promote reform of Israel's electoral
system and in analyzing major economic opportunities in the region

when peace finally comes. Since this is such an exciting issue,
we received full support from leaders in all the countries for our
Carter Center conference. We will be making full preparations

under the direction of Dr. Kenneth Stein, and hope that you will
plan to be with us the last three days in November.

While in Egypt, I met with President Julius Nyerere of
Tanzania, who is now co-chairman with me in the Eritrean-Ethiopian
peace talks. We have been constantly striving to gain the opening
of supply routes to provide relief to more than 3 million people
who are faced with starvation, and there has lately been some good
news from both sides. President Nyerere and I decided to extend
invitations to President Mengistu Haile Mariam and Secretary Isaias
Afwerke to recommence peace talks in April. Mengistu has accepted,
and we are awaiting the EPLF response.

Needless to say, we accomplished most of our goals on the
trip. Our only disappointments were the failure of Lebanese
President Hirawi and PLO Chairman Arafat to meet with us because
of scheduling difficulties. We will try to rearrange these
meetings.

At the request of President Vassiliou, we landed in Cyprus and
enjoyed a visit with him. We discussed the ongoing dispute between
Greek and Turkish Cypriots and the hope that more intense mediation
efforts might be helpful in addition to what the United Nations has
been doing for several years.

This was an encouraging trip. The bottom line is that the
people of the Middle East - Egyptians, Israelis, Jordanians,
Lebanese, Palestinians, Syrians - want peace. One of our major

goals at The Carter Center is to explore every opportunity and
cooperate with all those who share our conviction that a
comprehensive peace settlement is both necessary and inevitable.
I know from Camp David days that the issues are sensitive and
controversial. However, there was an enthusiastic response in all
countries for our program this year to emphasize the necessity for
direct talks and to explore the relationship between peace and
economic cooperation. It is good to have you as a full partner in
this effort.

As usual, I have made a more confidential report to some top
American officials on our discussions with leaders in the Middle
East. This letter is just a general outline, so if you have any
further specific questions, please share them with us.
Page 5

Thanks again for making it possible for us to carry out the
purpose of our Center. We always strive to make you, as friends
and supporters, proud of the work we do together. Come to visit
us when you can, and let me know if there is ever any way we can
help to repay your confidence and generosity.

Sincerely,

ae

— YS "7, et