Word: cairo
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...appear to be siding with the Arab hard-liners against Egypt, "the Saudis will feel compelled to support the fait accompli, despite their carping." If Saudi Arabia becomes vocal in backing Egypt, Safran believes that Jordan's King Hussein might then stop equivocating about whether to endorse Cairo's treaty with Israel...
Under the agreement, the countries will withdraw their ambassadors from Cairo and cut off diplomatic relations with Sadat's government. Egypt's membership in the Arab League will be suspended, and the organization's headquarters will be shifted from Cairo to Tunis. Technical and financial assistance to Egypt will be canceled. A ban on petroleum shipments to Egypt will be imposed. It was unclear, though, how all this would affect bilateral agreements like Saudi aid. In any case, it is likely that Arab heads of state will soon confer to determine exactly how the anti-Egyptian boycott...
Armed guards were everywhere, and the trip to the headquarters of the P.L.O. leader was made in secrecy. Yasser Arafat saw TIME Cairo Bureau Chief Dean Brelis and Beirut Reporter Abu Said Abu Rish in one of his hideaway offices in Beirut. He seemed confident, even buoyantly happy, as he talked for two hours. Excerpts...
...Begin arrived for breakfast, and Carter offered him Vance's proposals, which were not very different from those that Dayan had been urging the Israeli Cabinet to accept. The main points: ? Israel will drop its demand for preferential rights to buy guaranteed quantities of Egyptian oil if Cairo will sell oil to Jerusalem on nondiscriminatory commercial terms. The U.S. will extend to 15 years the five-year commitment that it made in 1975 to guarantee Israel's supply of oil if that country is unable to meet its needs on the world market. ?Egypt will drop its demand...
...budget proposes just over $6 billion for fiscal 1980, and would have been higher, a White House spokesman said, except that larger sums "might have raised the profile of foreign aid and made it even more vulnerable." The proposed 1980 budget is vulnerable enough. While the President shuttled between Cairo and Jerusalem, the Senate Foreign Relations Committee was recommending aid cuts of more than $700 million...