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The withdrawal of Israeli troops promises to help repair Israel's relations with Egypt, which has long called for an Israeli pullout. Earlier this month Israelis were allowed to participate in the Cairo Book Fair for the first time in two years. Last month the two countries resumed negotiations over disputed border areas after nearly two years of silence. But there was a failure to resolve the major issue of Taba, a 250-acre wedge of palmy beachfront on the eastern edge of the Sinai, which is claimed by both countries. Peres and Egyptian President Hosni Mubarak sounded apprehensive last week about future discussions. "I cannot say that I am satisfied with the mutuality of the effort," said Peres. Declared Mubarak: "I am asking the Israelis to be more flexible." In this fashion, the two countries continue to shiver through what they call their cold peace. In southern Lebanon, however, any kind of peace would be welcome.