SALZBURG: President [Gerald] Ford and President Anwar Sadat of Egypt conferred ... today [June 1] on ways towards a Middle East settlement. Their first meeting, held in a ... friendly atmosphere, was devoted to a discussion of the diplomatic options open in the Middle East, Mr Joseph Sisco, US UnderSecretary of State for Political Affairs, told reporters.

... At a luncheon today, Mr Sadat in a toast recommended to Mr Ford `the most simple solution` in the Middle East. He said this consisted of `recognition of the territorial integrity and independence of the States, the inadmissibility of territorial conquest and the basic right of self-determination for the Palestinian people, which have a right to a national homeland.` Arab sources said Mr Sadat ... intended to initially sound out Mr Ford on the state of US-Israeli relations. The Egyptian leader had no concrete proposals to put forward, the sources said. [The] Egyptian Foreign Minister ... made clear ...

that the meeting was a watershed for war or peace... .