Shultz tells Jewish group peace opportunity knocks

Secretary of State George Shultz said Israel and the Arab states should start peace negotiations soon, because the Mideast has arrived at ''a moment of unprecedented opportunity'' for peace.

In his first public speech since taking office, Mr. Shultz addressed the national leadership of the United Jewish Appeal (300 members who had each given a minimum of $100,000 in donations). He strongly defended President Reagan's Mideast peace proposals, and he appeared to make a deliberate effort to balance his speech, calling for flexibility on the part of both Israelis and Arabs and assuring Israel the US would not dictate peace terms to Israel.

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