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Dukakis meets with Carter

By KEN CAFARELL

BOSTON -- Democrat Michael Dukakis indicated Friday he would favor moving the U.S. Embassy in Israel from Tel Aviv to Jerusalem.

The Massachusetts governor, who this week won enough national convention delegates to clinch his party's presidential nomination, also refused to become involved in a verbal battle with Republican Vice President George Bush, who Thursday charged Dukakis is a '60s liberal' who is too far to the left for the American electorate.

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'I'm going to campaign on the issues,' Dukakis said at a news conference. 'I would hope that others do the same. In my judgement, that's how you go out and win votes.'

A main theme of Bush's campaign is that Dukakis is too liberal and resembles Carter.

Dukakis talked to reporters after a private, 20-minute meeting with former President Jimmy Carter, who was in Boston promoting a new book.

Dukakis did not disclose what was discussed, saying only it was a 'pleasant meeting.' In response to reporters' questions, Dukakis said the two men did not talk about potential vice presidential candidates or the governor's upcoming campaign swing through the South.

Asked about reports that as president he would change U.S. policy and move the embassy in Israel, Dukakis replied, 'I didn't say that. I said that our practice traditionally has been to go where the host nation says its capital is.'

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A short time later, as reporters continued to press him on the issue, Dukakis said, 'If a nation decides that part of a community within its borders is its capital, traditionally we have accepted that. I would do the same in this case.'

Asked by reporters, 'So you would move it (the embassy)?' the governor responded, 'If Israel says that's where its capital is - yeah.'

Israel, which claims Jerusalem as its capital, would like for the United States to move the embassy. The United States, however, does not recognize Jerusalem, which is in disputed territory, as the capital.

Dukakis spent much of the day dealing with a growing state budget crisis, which threatens to put Massachusetts into a deficit after three years of record revenue growth and surpluses.

A projected revenue shortfall has grown from about $70 million ago several months ago to nearly $400 million this week, a situation Dukakis attributed to a'loophole' in state corporate tax laws. The state budget totals $11.9 billion.

Despite the budget crunch, Dukakis financial experts still predict the state will finish the fiscal year June 30 with a small surplus.

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