Yedi'ot Aharonot, 26 Jan 99 p 9

       [Report by Shim'on Schiffer, Alex Fishman, 'Amir Rappaport, and Eytan Glickman]

In his last day as defense minister, Yitzhaq Mordekhay raised the issue of Lebanon once again.
"Negotiations are being held on the Lebanese issue," he told reporters at a Golani outpost on the
northern border, adding: "I cannot go into details, but I hope that the talks we are holding will yield
results."

Prime Minister Binyamin Netanyahu assailed Mordekhay's remarks, saying: "He divulged sensitive
information and made cynical use of classified information he had obtained within the framework of
his duty." Nevertheless, Netanyahu confirmed that the Israeli Government is holding contacts on
changing the IDF [Israel Defense Forces] deployment in Lebanon.

The negotiations to which Mordekhay was referring are primarily focusing on the possibility of the
Lebanese Army's deploying in the Jazzin area while the SLA [South Lebanon Army], under the
leadership of Antoine Lahd, would withdraw from the area. According to this idea, Syria will guarantee
that the residents in the area will not be hurt as a result of the departure of Lahd's men.

Mordekhay recently asked Uri Lubrani, coordinator of government activities in Lebanon, to explore
this possibility with Assistant Secretary of State Martin Indyk. The Americans relayed the initiative to
Lebanon and Syria, but apparently the move is still in the initial stages.

[In an analysis on page 8 of the same Yedi'ot Aharonot edition, Shim'on Schiffer adds that "Lubrani
and Indyk are trying to promote the Jazzin plan, but so far they have failed to win the necessary
support in Lebanon and Syria."]

Mordekhay and Lubrani explained yesterday that the aim of the contacts the government is holding
regarding the Lebanon issue is to "reduce the vulnerability of IDF soldiers in certain locations in
Lebanon." Sources in the Northern Command confirmed that this involves a withdrawal from the
Jazzin area.

A few months ago, the defense establishment decided to try to implement the "Jazzin First" plan
within the framework of an arrangement with Lebanon. General Lahd, who had been opposed to the
evacuation of the Jazzin enclave, which the IDF and the SLA entered in 1985, retracted his
opposition. The SLA had been stationed in Jazzin, which is outside the security zone, with the aim of
creating continuity between Christian settlements and the security zone, thus also creating a passage
for the residents of the south from the security zone to Sidon and to al-Shuf towns in the north.

Sources in the IDF maintain that the Jazzin enclave does not contribute anything significant to the
security zone and that it constitutes a burden to the IDF. Against this background, the IDF formulated
the Jazzin First plan, which is a model for the IDF pullout from Lebanon. The idea: Let us begin with
the "nonessential" Jazzin and, if this works out, we will continue.

Mordekhay claimed yesterday that it will be up to the next government to exert the main effort in
changing the situation in Lebanon by conducting negotiations with the Syrians. This plan is exactly the
opposite of the policy currently pursued by the government, which tried to find a solution in Lebanon
without Syrian intervention. Mordekhay said: "I think anyone who wants to pretend that the Syrians do
not exist is wrong." He added that the Lebanese arena can constitute a starting point for negotiations
with the Syrians.

Mordekhay said: "The negotiations with Syria are an important thing. The main problem is how to
convince Syria that it stands to gain nothing from a war in Lebanon. Recently ,we have been engaged
in a dialogue with the aim of reaching an arrangement regarding various problems in Lebanon. The
problem must be solved. We must continue the steps we are taking while concentrating on an
appropriate security arrangement."

Yesterday, Public Security Minister Avigdor Qahalani criticized Mordekhay's statement. He said: "It
is regrettable that officials use Israel's top classified material as political ammunition against cabinet
members. I hope this will stop at once."

Yesterday, Lebanese Prime Minister Dr. Salim al-Huss officially denied that negotiations are being
held on an IDF withdrawal from Lebanon.

The Knesset Foreign Affairs and Defense Committee, which was slated to convene yesterday with
the participation of outgoing Defense Minister Mordekhay, was canceled. In response, committee
member Yosi Sarid warned: "When the outgoing minister warns of tricks, that is the time to keep
one's eyes open and beware."

[Tel Aviv Ma'ariv in Hebrew on 26 January carries a related report on page 2 by Ben Kaspit, Yo'av
Limor, and Avi Ashkenazi, adding: "Ma'ariv has learned that six months ago, a real step was taken in
the field when the Kafr Falus passage was opened. This passage, which is designed to ease daily life
in the Jazzin area and facilitate the passage from the north to the south, is a test case for the system
to be used in the area after the evacuation, within the framework of which the Lebanese Army will
assume operational responsibility in the area with US supervision and Syrian consent.

["The contacts were initiated by Defense Minister Yitzhaq Mordekhay with Prime Minister
Netanyahu's consent. Uri Lubrani, coordinator of government activities in Lebanon, was acting on
behalf of Mordekhay. During his recent trip to Europe, Minister Ari'el Sharon was also involved.

["Contacts were held primarily with the Americans. Martin Indyk consolidated the contacts and
constantly briefed Syrian Foreign Minister Faruq al-Shar'. Syria was not supposed to be a partner to
the arrangement but was to tacitly accept it."]