134. Memorandum From Secretary of State Shultz to President Reagan1
[Omitted here is material unrelated to Algeria.]
2. The Algerian Emissary. I met with the Algerian Commerce Minister Khellef,2 who is to deliver an oral message to you tomorrow from President Bendjedid. Khellef alleged a Moroccan turn towards a military solution in the Western Sahara and argued that the US should press King Hassan to move towards direct negotiations with the Polisario. I told him we agree on the need for a negotiated settlement, but believe the Moroccans recognize that a military solution is unrealistic and want to proceed with the OAU-mandated referendum. Khellef mentioned the situation in Lebanon but argued that the Palestinian problem and the lack of acceptance of their right of self-determination was at the heart of the dilemma. The US could help, Khellef said, by bringing Israel to recognize this. I told him we continue to believe that Palestinian problems can be best confronted in negotiations between Jordan (with Palestinian participation) and Israel.
[Omitted here is material unrelated to Algeria.]