Since 10 July Israel found itself engaged in hostilities with P.L.O. terrorists operating
from southern Lebanon. These hostilities were marked by artillery duels, air strikes,katyusha shelling, and as a result, Israeli towns and settlements were hit, sustaining casualties and much damage. Ambassador Habib was ordered by President Reagan to arrange a cease-fire. The U.S. requested Israel to permit Mr. Habib to deal with the government of Lebanon. The good offices of Saudi Arabia were also utilized. On 21 July Mr. Habib was authorized by the Israeli government to discuss "peaceful relations" with Lebanon following a cease-fire. Israel refused under all circumstances to negotiate with the P. L 0. Text:
The Prime Minister reported to the cabinet on his talks with Mr. Philip Habib, the emissary of the President of the U.S., and on the personal messages received from the Secretary of State, Mr. Alexander Haig.
The Cabinet decided as follows:
(1) The Cabinet agrees that Mr. Philip Habib embark upon contacts with the President of Lebanon, Mr. Sarkis, and with the government of Lebanon, with the aim of establishing peaceful relations between Israel and Lebanon, from where the terrorist organizations incessantly attack the territory of Israel and murder and maim its citizens.
(2) The Government of Israel will under no circumstances conduct negotiations, directly or indirectly, with the Arab terrorist organizations whose declared aim is the destruction of Israel and its people, and who intentionally turn their arms, which are supplied to them in great quantities by the Soviet Union, Syria and Libya, against the Jewish civilian population. Likewise, the Government of Israel will not authorize anybody to conduct negotiations with the aforementioned terrorist organizations.
(3) The Government will continue to defend the citizens of Israel. This is its right and duty.
The following statement was made by Mr. Philip Habib after the Prime Minister's announcement:
On the basis of the statement of the Government of Israel, as presented to me by the Prime Minister, I will proceed with my mission as directed by President Reagan, to seek to secure a cease-fire along the Israeli-Lebanese border, as a first step to bringing calm to the area.