During the first week of August, secretary of State Vance held talks in Egypt with President Sadat; both agreed that the groundwork for Geneva talks could be laid in a special working group of Arab and Israeli officials to meet in the United States in mid-September. The working group could be made up of Foreign Ministers. The idea was initially proposed by President Sadat during his talks in Washington with President Carter in April 1977. In Beirut Mr. Vance discussed economic aid to rehabilitate Lebanon after the civil war. Talks were also held in Damascus, Amman and Riyadh. In Saudi Arabia there were reports quoting a Palestinian source that the PLO informed the U.S. it would accept Resolution 242 if it were amended to include reference to the national rights of Palestinians. In Plaines, President Carter was asked about this report and following are his remarks:
Q. There is some encouraging news out of the Middle East this morning. Any comment on the reports of the PLO?
The President: No we don't know yet what is going to happen. Until I get a complete report from Cy Vance - I get a message from him every night and then a briefing every morning. If the Palestinians will recognize the applicability of UN Resolution 242, then it would open up a new opportunity for us to start discussions with them and also open up an avenue that they might participate in the Geneva Conference. But whether they will do that, we don't know yet.
Q. If indeed they do recognize 242 wouldn't that more or less assure that the Geneva Conference will indeed begin?
A. I can't answer that question because there might be other obstacles to it. But I think I can be able to answer that question when Secretary Vance gets back. He has now decided, I think, to talk with some of the leaders in the Middle East. So this might be an encouraging sign.
Q. To get back to the other Arabs countries again?
A. Either double back or have additional conversations with them before he leaves the Middle East. He is going to stay over in London an extra day to talk to President Nyerere about Rhodesia and Namibia. So, I think things look better than they did. I hope we can work something out on the Palestinians. That is the biggest obstacle right now.
Q. We always ask you about the adverse developments. We have given you a chance to talk about a positive development for a change.
A. Thank you very much.
Q. What about prospects for a Geneva Conference in October? Still good?
A. Well, I would say they are about the same as they were. The biggest obstacle that we have detected, of course, is whether or not the Palestinians would participate in the discussions.
Our position has been that until the Palestinians and their leaders recognize Israel's right to exist, we would not have conversations with them ourselves. So, if the Palestinians do adopt as a basis for the discussions United Nations Resolutions 242 and 338, then that would certainly make it easier to go.
Q. Have you had any contact with the Palestinians formally, informally to indicate their position?
A. I think a better word would be indirectly. We have not had any direct conversations with them. But, of course, they are sending us messages through the Syrians, the Saudi Arabians, the Jordanians and the Egyptians. So, we have a means to contact them and to exchange ideas with them directly. But we are not going to meet with the Palestinian leaders as long as they are committed to the destruction of Israel.
Q. What were they saying, indirectly?
A. That they may adopt UN Resolution 242 which does recognize Israel, Israel's right to exist permanently and in peace with secured borders. The thing that has made the Palestinians reluctant to do this was at the time 242 was passed, it only referred to Palestinians as refugees. If the Palestinians should say, "We recognize UN Resolution 242 in its entirety, but we think the Palestinians have additional status other than just refugees," That would suit us okay.