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    Israeli Foreign Minister Yigal Allon and U.S.Secretary of State Henry Kissenger said on Tuesday (26?

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    Israeli Foreign Minister Yigal Allon and U.S.Secretary of State Henry Kissenger said on Tuesday (26 August) that Israel and Egypt were very close to agreement on an interim peace settlement in Sinai Desert.

    The statements came following a meeting between the two men in another of Dr. Kissinger busy days of shuttle diplomacy. Later in the day be met with the Egyptian President Anwar Sadat in an Unusual outdoor setting at President Sadat's summer palace in Alexandria, where the delegates sat at an oval table in the sunshine.

    Details of the agreement have not been released but it's believed they involve a promise by Egypt to relax economic and political warfare against Israel in return for an Israeli withdrawal eastward in the Sinai Desert and the surrender of both the Giddi and Mitla passes as well as the oilfields at Abu Rudies.

    On Wednesday (26 August) the Israeli cabinet approved the text of the interim agreement and it's believed it will be initialled on Friday (29 August), although ir may mot take effect for eight or nine months. Formal signing may come in Geneva next month.

    Egyptians consider the agreement the first real step in 27 years to ending the Arab-Israeli conflict. They expect the agreement to be followed by negotiations between Israel and Syria concerning the Israeli occupied Golan Heights, considered by Israel for be far more strategically valuable than the Sinai positions.

    This film includes remarks by Mr. Allon and Dr. Kissinger following their talks in Jerusalem. The transcript follows:

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    Reuters - Source to be Verified
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