King Hassan II of Morocco tonight conceded virtual failure in his two-day summit meeting with Israeli Prime Minister Shimon Peres, whom he accused of rejecting fundamental Arab conditions for peace in the Middle East.
Hassan said Peres had rebuffed his efforts to persuade Israel to accept dealing with the Palestine Liberation Organization and to withdraw from all Arab land occupied in the 1967 Arab-Israeli war.
Speaking on nationwide television, the Moroccan monarch also lashed out against Syria and other Arab countries for condemning him out of hand yesterday without trying to understand his motives for inviting Peres for the first meeting between an Arab and an Israeli leader in five years.
"I have no lessons to receive from anyone about my Arabism," he said during an apparently extemporaneous address from his palace at Ifrane, the mountain village 100 miles east of here where he met Peres.
Upon return to Israel, Peres told a news conference that he was "highly encouraged" by his visit and expected more meetings between Israeli leaders and the king.
Hassan also said he had turned down a proposal from President Reagan to hold the summit talks in the United States, on the grounds that he did not want the discussions "under the umbrella of one superpower or another."
Peres, too, had suggested that the talks be held in the United States, Hassan said, and apparently had informed Washington and asked Reagan to do likewise.
Hassan said that eight days ago he canceled a scheduled visit to Washington, publicly pleading advice from doctors that he rest but actually because he did not want to allow critics to charge that "he had received orders from there" to meet Peres so soon after.
In recounting what he presented as a series of exchanges with his Israeli guest, the king said he concluded by saying, "Since you refuse those two fundamental priorities, let's stop and say goodbye."
Despite Hassan's cut-and-dried account, political analysts said they doubted that Peres could have been expected to give ground on such key tenets of Israeli policy maintained by all the Jewish state's governments over the past 19 years.
Hassan did not spell out what specific proposals Peres made.
Much of Hassan's 50-minute address was devoted to justifying his controversial decision to invite Peres, a move that has confused and angered an Arab world still badly split from the late Egyptian president Anwar Sadat's decision to conclude a separate peace with Israel in 1979.
Hassan said that as chairman of the Arab League, his mandate allowed him to talk to any country to further Arab peace plans, and that Israel was not specifically barred.
For most of the past year, he said, he repeatedly had gone on record as seeking a meeting with Peres without intermediaries and on condition that the talks dealt with the Middle East's concrete problems.
The meeting's timing was dictated, he said, by Arab squabbling and because Peres is due to relinquish power in October to his "extremist and rightist" Likud coalition partner, Foreign Minister Yitzhak Shamir, who is widely deemed more hard-line toward the Arabs than is the present Israeli prime minister.
Hassan also said he decided to meet Peres after the Israeli agreed to limit the agenda to a plan adopted by the Arab League at a meeting in Fez, Morocco, in 1982, which implicitly recognizes Israel's right to exist while demanding self-determination and an independent state for the Palestinians -- demands that Israeli governments have consistently opposed. The Fez plan also calls for the return by Israel of Arab territories it seized in the 1967 war.
Although he never used the word failure to describe the historic talks, Moroccans were left with the unambiguous impression that Hassan felt his initiative had no future.
He said Peres would be reporting to the Israeli government and that he would send out letters to Arab governments explaining what had been said at Ifrane.
Explaining his anger at hostile reactions from hard-line states such as like Syria, which broke relations with Morocco yesterday, Hassan said Morocco was determined to exercise and maintain its "full independence and sovereignty."
Correspondent William Claiborne added from Tel Aviv:
Peres conceded at his airport news conference that his discussions with the king on the Palestinian issue were exploratory only and that differences remain, but he stressed that Hassan was speaking not merely as the leader of Morocco but as acting chairman of the Arab League and a "leader of the Arab people."
"We started with a very wide gap between the Israeli position and the Moroccan position and the Arab position. At least when it comes to formulating our two positions, the gap is still wide and demanding. In practice, I believe the king found that there is a common denominator, if not for anything else, at least for the mere fact that we could have met face to face to try to look where are alternatives, and not only where the problems reside," Peres said.
In response to a suggestion that no progress had been made on the Palestinian question, Peres replied, "You can define it the way you want. I wouldn't say we have solved the problem over a period of two days." Peres said that the next step in the peace process should be the normalization of relations between Egypt and Israel.