President Anwar Sadat wants Egyptian Jews living abroad to return home.

"They are talented people and have a future in Egypt," Information Director Morsi Saad Eddin said recently. "We want them to come back."

Egyptian officials stress that this policy was first formulated nearly two years ago, after the Arab League urged member countries to encourage the return of their Jewish citizens who had fled over the years.

Of the 67,000 Jews who lived in Egypt in 1948, only about 500 - mostly old men and women - remain today. Caught in the cross-fire of Arab-Israeli tensions, many Egyptian Jews emigrated to Israel. Others settled in Europe.

While few Egyptian Jews have yet returned to Cairo, officials feel that Sadat's visit to Jerusalem may spark a reverse exodus.

"We hear Egyptian Jews living in Paris bagan dancing and singing Egyptian songs when the President arrived in Jerusalem," Saadadin said.

Most Egyptians today would deny there is any anti-Semetic feeling in their country. They point to the fact that the acting foreign minister, Boutros Ghali, has a Jewish wife, Leah.

Cairo columnist Moustapha Amin contends that any tensions that have existed were the result of differences between Egypt and Israel, and nothing more.

"Being Jewish is not something that can be held against someone in this country,"Amin says. "After all, we had a Jewish senator elected here in 1924, and that was long before American did the same."

"If a peace agreement is signed between Egypt and Israel many Jews may want to return." a Jewish employee of the Cairo Grand Rabbinate says. "This would be a good thing because we would have good relations with everyone."