U.S. Envoy to Egypt Quitting Foreign Service

Nicholas A. Veliotes, the U.S. ambassador in Cairo who gained international notice last fall by demanding that Egypt “prosecute those sons of bitches” responsible for murdering an American tourist in the Achille Lauro hijacking, is retiring from the Foreign Service, the State Department said Tuesday.

Department officials said that Veliotes, 57, will be president of the New York-based Assn. of American Publishers. He became ambassador to Egypt in October, 1983, after two years as assistant secretary of state for Near East and South Asian affairs.

Discussions Under Way

The officials said that discussions about Veliotes’ successor as ambassador to America’s principal Arab world ally are under way between Secretary of State George P. Shultz and the White House.

Known for his candid comments--one U.S. official described the career diplomat as “a mercurial character”--Veliotes apparently irritated Egyptian authorities with his remarks.

Veliotes made his angry demand for prosecution of the Achille Lauro hijackers over an open ship-to-shore radio after he boarded the Italian cruise ship last October and learned that the Palestinian hijackers had killed Leon Klinghoffer, a handicapped tourist from New York, and had thrown his body and wheelchair overboard.

In a move that severely strained U.S. relations with Egypt, American jet fighters subsequently forced an Egyptian airliner carrying the terrorists to land in Italy, where they now are being tried for the hijacking. The Administration later made a number of conciliatory gestures to placate Egyptian President Hosni Mubarak.

A diplomat with a non-Middle Eastern country here, who insisted on anonymity, told the Associated Press that Veliotes is being forced out to placate the Egyptian government and to demonstrate that the United States wants to smooth relations with Cairo.

‘Shouting Match’

According to the diplomat, Veliotes had a “shouting match” with Shultz, who wanted him to return for consultations.

This account was disputed by the State Department. “I’ve heard nothing about any disagreements,” said Michael Austrian, the chief press officer in the Near East bureau.

“The ambassador is leaving of his own accord,” Austrian said. “We regret his departure. After 31 highly distinguished years in the Foreign Service, he has elected to take a new challenge in the private sector. He is one of our most effective and experienced diplomats and will be sorely missed.”

But the diplomat who said Veliotes was ousted insisted that the ambassador had planned to remain at his post at least two more years and then move on to another assignment before concluding his career.

‘I Am Not Coming’

The source said the Egyptians did not like Veliotes’ “style and his manner” and persuaded Shultz to recall him. “He was very mad and said, ‘I am not coming,’ ” the diplomat said.

According to his account, after Vice President George Bush reviewed the situation, Veliotes was dismissed.

Department officials said Veliotes told them in November that he intended to retire because the publishers association had made him an attractive offer. The officials said he told them that after four years in high-pressure diplomatic situations, he felt in need of a respite and that he was reaching an age at which it would be increasingly difficult to change careers.

In his new job, Veliotes will succeed Townsend Hoopes, another retired diplomat.