Bush Suspends PLO Talks : Accuses Arafat of Not Condemning Raid on Israel Beach : Decision Reluctant, He Says

President Bush today suspended an 18-month dialogue with the Palestine Liberation Organization, saying Yasser Arafat’s group had failed to forcefully condemn an unsuccessful terrorist attack on an Israeli beach.

Making clear he was taking the step reluctantly and considers Palestinian participation vital to a Middle East peace settlement, Bush said he nonetheless felt compelled to set aside controversial U.S. contacts with Arafat’s group for now.

“I have decided to suspend the dialogue between the United States and the PLO pending a satisfactory response from the PLO of steps it is taking to resolve problems associated with the recent acts of terrorism,” Bush said at a news conference during a one-day visit to Alabama and North Carolina.

The PLO reacted harshly, saying Bush’s decision was a provocation and it would ask Arab states to impose economic sanctions on the United States.

Jamil Hilal, director of the PLO’s information department in Tunis, told Reuters the suspension of the dialogue was “an unfriendly and provocative act. It will be seen as a blow to the peace process.”

The Israeli Embassy in Washington immediately hailed the move as one that would promote prospects for peace.

But Bush said in discussing his decision: “We believe that Palestinian participation is vital to any successful (peace) process. . . .

“It’s not an easy call. . . . I just feel that talking offers more potential than stiff-arming each other. And yet we can’t digest it as long as this terroristic act is sticking in our throat.”

The event that forced the U.S. hand was an attempted raid by members of a radical PLO faction against Israeli beaches on May 30. Israeli security forces foiled the raid and Israel claimed that this was an example of how the PLO remained committed to terrorism despite its public statements to the contrary.

The United States resumed diplomatic contacts with the PLO in December, 1988, after a 15-year interruption, once Arafat publicly forswore terrorism as a PLO policy and recognized Israel’s right to exist.

Bush said the U.S.-PLO dialogue could resume only after the PLO had condemned the May 30 raid and disciplined Abu Abbas, the leader of the radical faction that claimed responsibility.

Abbas masterminded the 1985 hijacking of the Italian cruise ship Achille Lauro in which American passenger Leon Klinghoffer was murdered.

“We’ve given the PLO ample time to deal with this issue. To date the PLO has not given a credible accounting of this incident,” the President said.

“Any time the PLO is prepared to take the necessary steps, we are prepared to promptly resume the dialogue.”

Bush said U.S. contacts with the PLO had been beneficial.

He also said he was pleased that the PLO had distanced itself from the May 30 assault, although without explicitly condemning it, and had issued a statement condemning attacks on civilians.

But he added: “This alone is not sufficient.”