One Arab group with which Israel refuses to negotiate is the Palestine Liberation Organization. Defense Minister Moshe Dayan insists that the Palestinians have lost their rights because of terrorism carried out by Al-Fatah and other fedayeen groups. "I will never negotiate with Yasser Arafat," says Golda Meir flatly of the man who founded Al-Fatah and heads the P.L.O. Last week in a rare interview, Arafat, 43, discussed the volatile Middle East with TIME Correspondent Spencer Davidson in Beirut.
Arafat seems obsessed with the CIA, which he automatically blames for almost any imaginable wrongdoing. He boasts that in its ninth year the Palestinian...