The World - News from Dec. 15, 1985

Israeli Prime Minister Shimon Peres said Israel and Egypt have tentatively agreed to settle a border dispute through arbitration if their direct negotiations fail, Israel television reported. The dispute over 250 acres of beachfront at Taba on the Red Sea has clouded relations between the two countries since April, 1982, when Israel returned the last of the Sinai Peninsula--except for Taba--to Egypt under their 1979 peace treaty. Also, Israel radio quoted Peres as telling his Labor Party that talks will not resume with Egypt on autonomy for the 800,000 Palestinians on the West Bank. “The subject is dead,” he said.