In return the Arab countries would recognize Israel. Prime Minister Begin has not halted the building of the settlements. He has ignored the President's wishes. The Congress has nevertheless voted the usual American subsidy to Israel for 1983, and in fact has increased it in spite of a request by the President to not do so. In other words, American taxpayers are subsidizing the expansion of Israel both into southern Lebanon and into the new settlements in the occupied territories in defiance of the wishes of the American President.
Peace is imposible so long as the annexation process continues.
The building of the settlements can be stopped only by the President and only if the President is willing and able to join the issue in Congress over the American subsidy to Israel. If he could stop the subsidy, Mr. Begin would be forced to call off the building of new housing for settlers and also be forced to withdraw his troops from Lebanon. This could be done only at the price of a bruising political battle in Congress between the President and the pro-Israeli lobby. There is no certainty that the President would win. If he did accept the issue and win, then his peace plan could move ahead.