The Prime Minister briefed the Cabinet on talks he held with Secretary of State Albright in Paris in December 1997, where she attempted to bridge the gap between the Israeli and the PA positions. He also announced that he would meet President Clinton in Washington on 20 January. The Cabinet also discussed the issue of Southern Lebanon and reiterated its previous position of readiness to accept Resolution 425 (1978) provided security arrangements were met. Israel ruled out unilateral withdrawal.
Foreign Minister David Levy resigned, citing many differences of views with the Prime Minister. The Prime Minister became the acting Foreign Minister, a position he held until October 1998, when Ariel Sharon was appointed to the post. Excerpts:
At the weekly Cabinet meeting today (Sunday), 4.1.98:
1. The Defense Minister and IDF Chief-of-Staff briefed the Cabinet on security matters.
2. The Prime Minister briefed the Cabinet on his conversation with U.S. Secretary of State Madeleine Albright. The Prime Minister said that the U.S. Administration had proposed that the meeting between himself and U.S. President Clinton take place on 12 January. The Prime Minister said that the earliest date on which he could hold the meeting was 20 January, and thus it was agreed between himself and the Secretary of State.
The Prime Minister emphasized that there is no truth to the report that he had delivered data or assurances to the U.S. on the scope of the phase. This report was also clearly denied by Dennis Ross. The Prime Minister told the Cabinet that prior to his departure for Washington, a discussion will be held - and a decision taken - by the Cabinet on the positions which he will present to President Clinton. The Prime Minister said that he intends to resume the Cabinet's political discussions following the approval of the budget.
3. The Defense Minister said that his remarks about UN Security Council resolution 425 express the positions of previous Israeli governments, according to which Israel would be prepared to withdraw to the international border in accordance with conditions which also appear in the resolution, i.e., that there will be an agreement which provides for security procedures which will prevent terrorist actions against Israel from across the Lebanese border, and that the Lebanese government reestablish its authority in southern Lebanon.
The Prime Minister said that the Defense Minister's remarks express an Israeli government policy which has not changed, i.e., that Israel is ready to accept resolution 425 provided that it is possible to reach an agreement with Lebanon which will ensure the security procedures required by Israel. Of course, a unilateral withdrawal is out of the question.