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The World

October 13, 1987

Israel and Egypt set up a special panel to try to resolve their dispute over the Israeli-held Taba coastal strip on the Red Sea, official sources said. The so-called three-member conciliation chamber will have 60 days to reach a compromise; otherwise a five-member arbitration tribunal established last December will decide the issue. Taba, a 760-yard beachfront strip in a popular tourist area on the Gulf of Aqaba, was retained by Israel after it returned the Sinai Peninsula to Egypt in 1982. Last month, Israel rejected a U.S. suggestion that Egypt take over the strip but maintain a hotel and vacation village under Israeli ownership.

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