Israeli jets bombed Palestinian strongholds in Lebanon for the second day running today. Half an hour later, Prime Minister Menachem Begin proposed a summit conference with the Lebanese president to draft a peace treaty and relocate Palestinian refugees.
Begin suggested that he go to Beirut or that President Elias Sarkis come to Jerusalem to discuss such a peace treaty, which he told the Israeli parliament could be reached "within a few days."
Begin's idea immediately was rejected by Lebanese Premier Selim Hoss in Beirut, news agencies reported. Hoss called the invitation "amazing, coming after the Israeli attacks on Lebanon" and added: "The offer is a maneuver to camouflage Israel's attacks against innocents in Lebanon. In the name of peace, Israel commits all these crimes in Lebanon."
[Boutors Ghali, the Egyptian secretary of state for foreign affairs, urged the United States to intervene to halt the Israeli attacks, and State Department officials said that even before the Egyptian appeal, the United States had urged Israel to stop the raids. Department spokesman Hodding Carter said the violence was hurting prospects for a Middle East settlement.]
The Palestine Liberation Organization said the Israeli jets bombed and rocketed the town of Aishiyeh but that no casualties were reported, according to news dispatches from Beirut Palestinian antiaircraft guns fired back at the attacking jets, but the PLO reports made no claim that any were shot down.
An Israeli military spokesman said the fighters hit a Palestinian camp at the southern Lebanese village of Reihah, which is next to Aishiyeh about 11 miles north of the Israeli border town of Metulla.
"Let it be known we shall not wait for another Nahariya," Begin told the Knesset, referring to the Palestinian terrorist attack April 22 in which four Israelis died. "Yesterday and today we struck at Palestinian murderers. We shall go on striking them with all our might and strength on the sea, in the air and on the land."
Amid chortling and sarcastic remarks by opposition members, Begin said that if Arab countries-he mentioned Syria, Libya, Saudia Arabia and Iraq as examples-would absorb most of the stateless Palestinian refugees in Lebanon, Israel "would be willing to cooperate in their rehabilitation."
At that point, an Israeli Arab Knesset member, Tewfik Toubi, a Communist, interjected, "You might as well send them to Australia. . .Don't you understand these people have a bond with their homeland?"
But Begin insisted the only source of Lebanon's problems is Syria, and he called on the "Syrian army of occupation" to leave Lebanon immediately.
Responding to the proposal, opposition Labor Party Leader Shimon Peres said sarcastically: "This was, indeed, a very brave move. After Mr. Begin tells the Syrians to leave Lebanon, they of course will."
Later, Peres told reporters, "It wasn't a particularly admirable speech. . .Lebanon is under Syrian occupation, and I believe Lebanon may have prior priorities other than making peace with Israel."
Syria has more than 20,000 troops stationed in Lebanon, the backbone of an Arab League peacekeeping force that entered the country in 1976 to end a civil war between right-wing Christian forces and predominantly leftist Moslems and Palestinians.
Begin did not make clear why he thought Sarkis, whom he repeatedly has referred to as the head of a "pupet regime" controlled by Syria, would negotiate with Israel, with which Syria is still in a state of war.
The speech was widely interpreted in the Knesset as an attempt to focus international attention on the Syrian presence in Lebanon and to demonstrate that the Lebanese government is unable to respond on its own to a peace initiative put forward by Israel.
Some political observers also suggested Begin's speech was a tactical ploy designed to portray Israel as a relentless peace-seeker and divert domestic attention from the issue of self-determination for Palestinians in the West Bank and Gaza.
Begin stressed in his hour-long speech opening the summer session that neither Israel nor Lebanon has territorial demands to assert against the other, and that because Israel supports Lebanon's territorial sovereignty, "peace could be attained within a few days."
On the Palestinian refugees, Begin said: "It is not we who created the problems, but if the Arab countries with their wealth of resources and territory would be ready to absorb tens of thousands of refugees, Israel would be ready to cooperate in their rehabilitation." He did not specify how Israel would cooperate.
Arab countries already contain thousands of Palestinians, some in camps and others working in a variety of fields. These countries have not granted wholesale naturalization to the refugees, supporting instead the PLO and its claim to a Palestinian homeland.
Begin added another puzzlement to his speech by pledging continued Israeli support to the Christian militias in southern Lebanon commanded by Maj. Saad Haddad. The militias have been confrontating regular Lebanese Army troops who moved south last month and attacked themselves to positions controlled by N.U. peace-keeping forces.
"We shall under no circumstances sell him down the river," Begin said, lapsing into English to emphasize his point.
Haddad, whom Israel long has supplied with arms and money in hopes of maintaining a friendly buffer between Palestinian forces and the Israeli border, has been charged with treason by Sarkis' government.
When Begin made his speech, the Israeli aircraft had just returned to their bases from today's attack on Palestinian bases. Yesterday, Israeli war-planes struck deep into north Lebanon, 40 miles north of Beirut.
Lebanese government officials said yesterday's raid at the Nahar Bared refugee camp nar Tripoli left six persons dead, including a 1 1/2-month-old boy.
Begin referred to today's and yesterday's strikes, saying Israeli will continue "to hit them anytime, anywhere by land, air and sea. We know where they [the Palestinians] are located, and we shall hit to destroy."
He referred to PLO leader Yasser Arafat as "the Palstinian Idi Amin."
In his rebuttal, Peres dismissed Begin's speech as "not serious," and severely criticized the government for the release of Palestinian prisoners.
Israel recently exchanged 76 Palestinian prisoners for the release of an Israeli reserve soldier captured after the March 1978 Israel invasion of southern Lebanon.
The Hebrew newspaper Yediot Ahronot today published a list of the exchanged Palestinians, which it said included 33 terrorists serving life sentences, most of them for murder of "civilians and Israeli soldiers."
The exchange has become a point of controversy here, and the opposition Labor Party said it will submit a motion of no confidence in the Likud coalition government. However, as in numerous co-confidence motions, Begin is expected to override the opposition easily. CAPTION: Map, no caption, By Dave Cook-The Washington Post