The exiled Arab mayor of East Jerusalem called on Vice President Mondale yesterday to cancel his planned visit to occupied East Jerusalem in the company of Mayor Teddy Kollek.

In a cable to the U.S. embassy here, Rouhi Khatib, one of the nearly 1,400 Palestinian Arabs deported by the Israelis from the West Bank and Gaza since the 1967 war, said the Mondale visit could be interpreted as implying U.S. recognition of the Israeli annexation of the Arab sector of Jerusalem. The annexation is not recognized by the United States or the United Nations.

He said the Mondale visit "antagonizes Arab feelings in general and Palestinian and Jerusalem feelings in particular."

Khatib is still recognized by the Arab countries and international organizations as the head of the Arab Municipal Council of East Jerusalem, which still meets privately there and communicates with Khatib here.

In an interview, Khatib said the proper thing for Mondale to do would be to visit Arab Jerusalem in the company of the American consul general in Jerusalem, not in the company of the Israeli mayor who claims to represnt both Arab and Israeli Jerusalem.

This was the procedure followed during the visit to erusalem earlier this year of Treasury Secretary W. Michael Blumenthal.

Khatib charged that it was a "mockery" to accept the U.S. explanation that Mondale is visiting East Jerusalem as a private citizen if Kollek accompanies him there.

[TEXT OMMITTED FROM THE SOURCE] said this represented "an American retreat" that came after Kollek's "threat" to boycott any ceremonies during Mondale's visit if the vice president did not visit the Old City in the presence of the Israeli mayor.