Saudi Arabia's Crown Prince Fahdibn Abdel Aziz said yesterday that the Middle East peace talks had totally failed and suggested that a Moslem holy war was now the only answer to the recent Israeli law making Jerusalem the permanent capital of the Jewish state.
In a statement to the Saudi News Agency, Fahd, the country's second most powerful figure, called upon all Arab countries to join with Saudi Arabia in devising a new strategy both to guarantee an independent Palestinian state and to defend "our holy Jerusalem" against the Israeli action.
"Hasn't the call on Arabs and Moslems for a long and persistent jihad [holy war] become the only answer to this Zionist religious and racist arrogance?" Prince Fahd said.
Meanwhile, a special envoy of Egyptian President Anwar Sadat met in Bucharest with Romanian Foreign Minister Stefan Andrei and mounting speculation that Romania might be preparing a new Middle East peace initiative of its own.
Butros Ghali, Egypt's minister of state for foreign affairs, flew into the Romanian capital Tuesday carrying a message from Sadat to President Nicolae Ceausescu. Ghali was expected to brief Ceausescu on the latest developments in the stalled Egyptian-Israeli peace talks.
Because of Ceausescu's earlier role in helping to arrange Sadat's historic trip to Jerusalem in 1977, there was speculation he might now attempt to arrange another summit meeting between the Egyptian leader and Israeli Prime Minister Menachem Begin or possibly call for an enlarged international conference to overcome the current political impasse.
Ceausescu leaves Sunday for a three-day state visit to Jordan and meetings with King Hussein, who is also reported to favor such a conference.
Meanwhile, reports from The Hague said that the Netherlands, the only European government with an embassy located in Jerusalem was considering relocating it following protests from Arab states and Iraqi and Saudi threats of an oil and economic boycott against any country recognizing the city as the Israeli capital.
A Foreign Ministry spokesman said the Arab protests and warning were receiving "the greatest possible attention" but did not indicate whether it had decided yet to move its embassy out of Jerusalem.