U.S. Drops Effort to Oust PLO’s U.N. Mission in N.Y.

In a clear victory for the State Department, the Reagan Administration decided Monday not to appeal a federal court decision prohibiting the U.S. government from closing the Palestine Liberation Organization’s observer mission at the United Nations.

The Justice Department, which had wanted to try to overturn the ruling, issued a terse announcement that the Administration had decided “that, on balance, the interests of the United States are best served by not appealing.”

Monday was the deadline for an appeal of the June 29 decision by U.S. District Judge Edmund L. Palmieri, which struck down the provision of the 1987 Anti-Terrorism Act that banned the PLO office at the United Nations. The judge said the measure violated U.S. obligations under the treaty establishing New York as U.N. headquarters.

Backed by State Department

The State Department supported Palmieri’s conclusion that the U.S. government cannot bar U.N. missions approved by the world body. For instance, Cuba, Iran and other nations that have no diplomatic relations with the United States are permitted to maintain missions at the United Nations.

The treaty permits the United States to refuse visas for individual diplomats assigned to the United Nations but not to ban a mission.

Moreover, Secretary of State George P. Shultz maintained that closing the PLO office in New York was a needless irritant to U.S. relations with the Arab world. He is known to have told associates that the 1987 law was one of the “dumbest” statutes Congress has passed recently.

Shortly before the law was enacted, the State Department--operating under existing authority--ordered the PLO to shut its Washington office. Department officials said the Washington office had no legal status similar to the mission in New York.

Controversial Decision

The Administration’s decision not to appeal is sure to be controversial. Sen. William V. Roth Jr. (R-Del.) warned Atty. Gen. Richard L. Thornburgh last week that he would “proceed further in this matter” unless the court decision was overturned.

“If the court’s decision is allowed to stand, a whole series of options will be denied to our counterespionage agencies,” Roth wrote. He said there was clear evidence that the PLO supports terrorism.

The Administration’s decision not to appeal also could become an embarrassment to Vice President George Bush in this year’s presidential campaign. Bush, the Republican candidate, and Democratic Gov. Michael S. Dukakis have sought to establish themselves as friends of Israel and supporters of its security, but Bush may now have to either repudiate a decision by the Reagan Administration or appear to be less forthright in his backing for Israel.

Israel and its American supporters have led the campaign to ban the PLO representation in the United States.

The Justice Department statement noted that the Administration had opposed passage of the Anti-Terrorism Act because of its impact on the U.N. headquarters treaty. “Nevertheless, the Administration proceeded to enforce the law by seeking a judicial order . . . to close the PLO mission,” the department said.

No Claim of Victory

State Department spokeswoman Phyllis Oakley avoided any claim of victory for her agency in the internal debate. She read the Justice Department’s statement to reporters but declined to elaborate, saying only: “I think the statement that was issued today stresses that this is an Administration position.”

Riyadh Mansour, the PLO’s deputy U.N. observer, hailed the Justice Department decision.

“This is a great victory for international law, the United Nations, the struggle of the Palestine people, the Palestine Liberation Organization and the glorious uprising of the Palestinian people in the occupied territories,” he said.