**JERUSALEM, Sept. 8: Prime Minister Yitzhak Rabin, for the first time, said today Israel would recognise the Palestine Liberation Organisation on certain terms, reports Reuter.***

WASHINGTON, Sept 8: Rocky negotiations on mutual Israeli-PLO recognition and public demonstrations In Israel against a plan for Palestinian self-rule clouded the Middle East peace talks today, report Reuter, AP.

A protest In Jerusalem that drew 60,000 people shows "there Is a constituency that needs to be convinced" of the merits of the self-rule plan, one Israeli official said in Washington.

Nevertheless, the largely ceremonial discussions at the State Department continued between Israeli and Palestinian negotiators.

Yasser Arafat arrived tn Tunis today to ask the PLO* ruling Executive Committee to approve a deal with Israel allowing for limited Palestinian selfrule in the occupied Gaza Strip and Jericho.

Arafat faces opposition from radical PLO factions and the meeting, scheduled for Wednesday night, promised to be

stormy.

The Palestine Liberation Organisation chairman arrived fri Tunis this evening from Cairo. He stopped over in Egypt on a Hight fron, Oman, where he won backing for the peace deal from Gulf Arabs.

Arafat, who held talks with Sultan Qaboos bin Said at his summer palace In the southern town of Salalah. blamed Israel for a delay in agreeing on the terms for mutual recognition.

“The Israelis as usual are trying to set conditions," Arafat told a news conference on Tuesday night, broadcast on Omani television. He did not

say what the obstacles were

Asked If Israel might recog nlse the PLO within the next 24 hours, as some PLO officials In Tunis had predicted, he said: "Not yet. This Is a problem... there are still some Issues which have not been decided

Meanwhile. Israeli Prime Minister Yitzhak Rabin faced opposition from his hard liners, who also opposed the deal.

Hundreds of right-wing protesters blocked traffic tn front Rabins office. Police moved In to disperse them before dawn with water cannon and clubs. Forty-ftve people were Injured and 33 arrested.

In another development. Arafat told the Israeli magazine Haolam Hazeh that Israel has agreed to a two-stage withdrawal from the Golan Heights tn exchange for peace with Syria. There was no Immediate comment from the usually se cretlve Damascus government.

(Earlier story on Page—5)

In Tunis, a senior PLO official said Israel and the PLO had finally come up with a draft agreement for declaring mutual recognition.

The source, who is a member of the PLO committee that supervised the Washington peace talks, spoke on condition of anonymity. He said under the draft, Arafat would:

—Announce recognition of Israel and Its right to exist.

—Denounce terrorism.

—Promise to call a meeting of the 468-member Palestine National Council, or parliament in exile, that would formally endorse his statements.

The official said Arafat was expected to make these commitments In a news conference soon after the Executive Committee meeting and also in a letter he would sign and send to Rabin.

The agreement for limited self-rule In Gaza and Jericho could then be signed later 1n the month, probably sometime before Sept 20, the official said.