THOUSANDS OF TUNISIANS DEMONSTRATED OUTSIDE THE TUNIS EMBASSIES OF THE UNITED ARAB REPUBLIC, IRAQ AND SYRIA YESTERDAY (TUESDAY) IN PROTEST AT ARAB CRITICISM OF PRESIDENT BOURGUIBA'S STATEMENTS FAVOURING NEGOTIATIONS WITH ISRAEL. THE DEMONSTRATORS, MANY OF THEM STUDENTS, WAVED BANNERS AND SHOUTED SLOGANS - SOME HURLED STONES AT EMBASSY WINDOWS. POLICE, ARMED WITH TEAR GAS GRENADES AND AUTOMATIC WEAPONS FINALLY PERSUADED THE DEMONSTRATORS TO DISPERSE, BUT NOT BEFORE THE NOISY PROTEST HAD BEEN GOING ON FOR MORE THAN TWO HOURS.

THIS WAS THE FIRST TIME THAT DEMONSTRATIONS HAVE BEEN HELD IN TUNISIA AGAINST ANOTHER ARAB STATE.

THE PROTESTS AROSE OUT OF WIDESPREAD CRITICISM IN THE UNITED ARAB REPUBLIC AND IRAQ OF PRESIDENT BOURGUIBA'S STATEMENTS ON ISRAEL LAST WEEK. THE TUNISIAN PRESIDENT PROPOSED THAT ARAB STATES RECOGNISE ISRAEL AND ITS BORDERS AS DRAWN BY THE UNITED NATIONS. IN RETURN, PRESIDENT BOURGUIBA SUGGESTED, ISRAEL SHOULD CEDE A PIECE OF TERRITORY FOR PALESTINE ARAB REFUGEES.

(A MEETING OF ARAB REPRESENTATIVES IN CAIRO TODAY (WEDNESDAY), HEARD A PROPOSAL TO EXCLUDE PRESIDENT BOURGUIBA FROM FURTHER SUMMIT MEETINGS. THE U.A.R. AND IRAQ ENVOYS IN TUNIS HAVE BEEN RECALLED, AND TUNISIA HAS RECALLED HER AMBASSADOR TO CAIRO FOLLOWING THE BURNING OF HIS HOUSE.)