1 European Union leaders said Wednesday Israel and the Union had a 'number of differences' over Israel's trade status in Europe, and that experts from both sides would meet next week to resolve them.
2 The delegation, headed by French Foreign Minister and current EU President Alain Jupee, arrived for a two day visit on a seeming collision course with the Jewish State over plans to enhance their role in Middle East peace efforts.
3 The announcement that the economic experts will meet on Feb. 16 in Europe comes in the wake of Israel's dissatisfaction with its trade status in Europe. Israel is looking to narrow a dlrs 7 billion trade deficit with European nations.
4 'In the present (economic) draft agreement, there are already exceptional arrangements provided for Israel,' Jupee told reporters following an hour and a half meeting between the delegation and Deputy Foreign Minister Yossi Beilin.
5 'There still remains at the center a number of differences,' he added.
6 The delegation includes Hans-Friedrich von Ploetz, Germany's Secretary of State for European affairs, and Secretary of State Carlos Westendorp of Spain.
7 The three men and their entourage flew in from Syria, where they promised more economic cooperation and support for Arab calls to rid the region of nuclear weapons.
8 Unlike the Arabs, Israel is widely believed to have a nuclear arsenal. But it has never admitted having a nuclear capability.
9 On Thursday, they are to meet with Israel's Prime Minister Yitzhak Rabin and with PLO leaders in the autonomous Gaza Strip.
10 Israel has long sought to minimize European involvement in peace talks, believing many European governments to be biased in favor of the Arabs.
11 But as the largest single aid contributor to the nine-month-old Palestinian autonomy in Gaza and Jericho, the EU now wants more of a say. The EU has pledged dlrs 400 million over five years -- about a sixth of the total international aid package promised the PLO.
12 'We know they are not happy with what they think is a minor role in the peace process,' said one Israeli official, speaking on condition of anonymity. 'They think we are telling them, `Open your bank accounts and shut your mouths.'
13 Jupee dismissed protests from Israel over the delegation's intention to pay a visit to the Orient House, the PLO's headquarters in East Jerusalem.
14 Israel sees such meetings as a violation of the autonomy accord and an effort by the Palestinians to establish a foothold in the sector, which was annexed into Israel's capital in 1967 but is desired by the Palestinians as the capital of their future state.
15 'It is a purely traditional kind of visit,' Jupee said, adding he hoped it 'did not overshadow' the rest of their time in Israel.
16 On Thursday morning, the Supreme Court is expected to discuss a petition submitted by a right-wing Israeli group, calling for the court to ban the Orient House visit as a violation of the law Israel passed to implement the autonomy accord.
17 There are also tensions over Israel's confiscation of computers, automobiles and hospital equipment shipped from Europe to Gaza in recent months. Israel argues it only wants the machines' serial numbers before releasing them duty-free.
18 Jupee told reporters in Damascus Wednesday he was worried about the apparent deadlock in Middle East peace talks.
19 Israel and Syria are stuck over the Golan Heights, which Israel occupied in 1967 and Syria wants back as part of any peace treaty. Israel has only publicly agreed to a partial withdrawal.
20 Jupee refused to comment on the Syrian talks, saying only that Syria wanted to continue the peace process.
21 Beilin said the Europeans came out of their meeting with a 'double message.'
22 'The Syrians did not accept the European position that Lebanon must be independent and can act on its own opposite Israel in the peace process,' Beilin said outside the Foreign Ministry.
23 'On the other hand there was a feeling that Syria has an interest in continuing the peace process (with Israel),' he said.
24 With the Palestinians, Israel has been slow at expanding autonomy to the West Bank, because of continuing terror attacks by Islamic militants.
25 Jupee also expressed support for growing demands by Arab countries to remove nuclear arms from the region.
26 Israel, the only Middle Eastern country believed to have nuclear weapons, has refused to sign the Nuclear Non-Proliferation Treaty and sees the anti-nuclear campaign as directed against it.
27 The Arabs argue that Israel's reputed nuclear potential is only driving other area countries to seek nuclear weapons. Egypt, the first Arab country to make peace with Israel in 1979, is spearheading the campaign and threatening to refuse to renew the treaty this spring unless Israel joins it.
28 'We hope all countries will join the (Nuclear Non-Proliferation) treaty and we have supported efforts to make the Middle East region a nuclear-free zone,' Juppe said.
29 Israel has been leery of Europe's friendship with Syria and was critical of a decision last year to drop an arms embargo against Damascus. Israel argued that the decision was premature, blaming Syria was for permitting guerrilla attacks against Israeli soldiers in south Lebanon.

The announcement that the economic experts will meet on Feb . 16 in Europe comes in the wake of Israel ' s dissatisfaction with its trade status in Europe . Israel is looking to narrow a dlrs 7 billion trade deficit with European nations .
dissatisfaction
What caused the dissatisfaction?