Following is the text of the statement President Anwar Sadat made to reporters yesterday at the conclusion of his summit with Israeli Prime Minister Menahem Begin. The remarks were in English.

In the nam of God, let me seize this opportunity to express my gratitude for the efforts you have done to cover the historial moments here in Ismailia. As you know, after my visit to Jerusalem om the 20th of November a new spirit prevails in the area and we have agreed in Jerusalem and in Ismailia also to continue our efforts towards achieving a comprehensive settlement.

We have agreed upon raising the level of the representation in the Cairo conference to ministerial level and as you have heard yesterday we have agreed upon two committees: A political committee and a military committee headed by ministers of foreign affairs and ministers of defense. The military committee will convene in Cairo. The political committee will convene in Jerusalem.

Those committees shall work in the context of the Cairo conference, meaning that they will report to the plenary whenever they reach any decision. (On) the question of the withdrawal we have made progress but on the Palestinian question which we consider the core and crux of the problem here in this area . . . (sic).

The Egyptian and Israeli delegations here discussed the Palestinian problem: The position of Egypt is that on the West Bank and the Gaza Strip a Palestinian state should be established. The position of Israel is that Palestinian Arabs in Judea, Samaria, the Strip should enjoy self-rule.

We have agreed that because we have different on the issue, the issue will will be discussed in the political committee of the Cairo preparatory conference.

I hope I have given you some light upon our work and thank you again.