Palestinian political figures here are very pleased and encouraged by the PNC’s actions, which went further than they expected by accepting [UN Security Council Resolution] 242. They believe their efforts to push the PNC toward more decisive and realistic action have been rewarded. They see the PNC’s action as a historic decision to coexist with Israel, and believe that it provides a platform for a new Palestinian political program that will ultimately engage the U.S. and Israel in negotiations for a two state solution. They credit Arafat with leading the PNC toward realism and have sent a petition to the U.S. expressing their “acceptance of a Jewish state In Palestine.” They see Arafat’s proposed UNGA speech (which is also anticipated in the latest Intifada leaflet) as an important next step, and let us know that a U.S. turn down will be a serious setback for the moderates. We have cautioned contacts that no decision has yet been made on Arafat’s visa.
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