Middle East: Two-Step

The P.L.O. makes a move

"Mr. Reagan could not say he has no anwer to his proposal for a Middle East settlement." That was the way a top political adviser to Palestine Liberation Organization Chief Yasser Arafat ex plained the significance of a diplomatic arrangement worked out last week between the P.L.O. and Jordan. The agreement, hammered out in committee meetings chaired by Arafat and Jordanian Prime Minister Mudar Badran, pledges "joint political moves at all levels" and calls for "a special and distinctive relationship" between Jordan and a "liberated Palestine" to be created out of the Israeli-occupied West Bank...

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