The European Common Market bowed to Arab economic pressure yesterday and agreed to support a Palestinian homeland and condemn Israeli occupation of Arab lands.
The nine-member European Economic Community reached the diplomatic understanding with 21 Arab nations during the final round in the two-year "Euro-Arab dialogue," a series of talks originally designated to focus on economic and trade matters. The agreement was announced in a joint statement issued after the meetings.
Diplomats said, however, that the Arabs, through continual threats of wielding their powerful oil monopoly, forced the Common Market to consider the political questions.
The Common Market stopped short of going along with Arab demands for an arms and economic embargo against Israel and full recognition of the Palestine Liberation Organization as the sole representative of the Palestinian people.
In other Middle East developments, an Israeli army spokesman said that anti-tank rockets were fired at an Israeli patrol near the border with Lebanon. No casualties were reported.
It was the first incident of shooting from Lebanon into Israel since a cease-fire agreement was reached between Israeli-backed Christin militia and leftist-Palestinian forces in southern Lebanon on Sept. 26.
Egyptian President Anwar Sadat arrived in Bucharest to discuss Middle East developments with Romanian President Nicolae Ceausescu. It was the firststep on a tour to include Iran and Saudi Arabia.