Israel

There are symptoms of peace fever everywhere in Israel in anticipation of a peace treaty with Egypt.

An enterprising record company in Tel Aviv is already on the streets with "The Peace Record," which has Abba, Cat Stevens, Richie Havens and Louis Armstrong all singing their praises to peace. Some of the offerings: "Why Can't We Live Together?," "Peace Train" and "Everything is Beautiful."

Shalom Cohen, an Israeli Jew who was born in Cairo and raised in Iraq, is about to hit the bookstands with the first Hebrew guide to tourist in Egypt, according to the Israeli army radio station. Cohen's paperback is entitled "Egypt - A Guide for the Israeli Tourist."

Israel's commitment to give up the Sinai desert moved the Ron Travel Agency to start advertising a special "Before We Give Up the Territories" tour. For 2,300 Israeli pounds ($125) you can travel "through the desert in the footsteps of the children of Israel" before it becomes Arab property again. The agency notes that the price includes "full security."

The Discount Bank of Israel, seeing opportunity on the horizon, ran a full page ad yesterday showing Israelis on camels lined up at a drive-in window amidst the pyramids of the Nile.

"Egypt might not be so far away after all . . . and the day we open a Discount Bank branch in Cairo will be a great day," heralded the ad.

And the year of peace is 5739. Rosh Hashana (Jewish New Year) is Sunday night, and synagogues here report that the demand for seats has been unusually high since Camp David. Rabbis say they have been asked by their congregations to deliver special peace sermons.

THE MOST POPULAR guessing game these days is who will be Egypt's ambassador to Israel and vice versa. Simcha Dinitz, Israel's envoy to Washington and Eliahu Ben-Elissar, who runs Prime Minister Menachem Begin's office, are still the most oftnamed choices, although former U.N. Ambassador Abba Eban is coming yp fast.

As for Egypt, Murai Saad Edin, information chief in Cairo, has said he would like the job. THere is also talk of Boutros Ghali, acting foreign minister because his wife is jewish.

But the pundits are forgetting that you can practically count Jewish ambassadors posted here on one hand, and the new envoy will probably be someone especially close to Sadat.

THE FIRST RUSH of peace euphoria, however, seems to have ebbed somewhat for Israel's teachers union.

The day of the Camp David announcemnt, the teachers ended an eight-day strike as an expression of national unity. They said they felt they had to be with their students during that historic period.

Now, however, the teachers have announced they will strike again after the Rosh Hashana and Yom Kippur holidays if their wage demands are not met.

"Anyone who thinks there is no need to worry about [a strike] because of the holidays should remember the holidays will be over," said a union spokesman.

Even Begin is getting into the lighter spirit of the day. In a speech to the Rotary Club here, he recalled that during the Camp David summit he agreed to play chess with national security adviser Zbigniew Brezezinski, even though the prime minister had not played for 30 years.

Begin said he lost so many games that White House aides pleaded with him to make the supreme effort, otherwise they couldn't be able to live with Brezezinski.

Begin said he put his all into the final game and - "with God's help" - won it, thereby obtaining the eternal gratitude of President Carter's aides.