DATE=2/27/98 TYPE=CORRESPONDENT REPORT NUMBER=2-227382 TITLE=ISRAEL / MOSSAD (L) BYLINE=AL PESSIN DATELINE=JERUSALEM CONTENT= VOICED AT: INTRO: ISRAEL HAS FORMALLY APOLOGIZED TO SWITZERLAND FOR AN INCIDENT IN WHICH ISRAELI MOSSAD INTELLIGENCE AGENTS WERE ARRESTED IN THE SWISS CAPITAL, AND THEN ISRAELI OFFICIALS LEAKED NEWS OF THE EVENT. V-O-A'S AL PESSIN REPORTS FROM JERUSALEM. TEXT: ISRAELI FOREIGN MINISTRY SPOKESMAN AVIV SHIRON SAYS THE APOLOGY WAS DELIVERED TO THE SWISS FOREIGN MINISTRY IN BERN BY ISRAEL'S AMBASSADOR ON FRIDAY. MR. SHIRON SAYS IT WAS SIGNED BY THE DIRECTOR GENERAL OF THE ISRAELI FOREIGN MINISTRY, EITAN BEN TZUR. /// SHIRON ACTUALITY /// BEN TZUR ACTUALLY EXPRESSES REGRET IN THE NAME OF THE STATE OF ISRAEL ABOUT THE INCIDENT AND THE COMPLICATIONS CAUSED BY IT TO THE SWISS GOVERNMENT. /// END ACTUALITY /// SWITZERLAND HAD DEMANDED THE APOLOGY AS A CONDITION FOR RELEASING THE ONE ISRAELI AGENT IT STILL HOLDS IN THE CASE. MR. SHIRON INDICATED ISRAEL HOPES THIS LETTER WILL FULFILL THAT REQUIREMENT. /// SHIRON ACTUALITY /// WE EXPECT THAT IT WOULD CONTRIBUTE TO A SPEEDY RESULT OF THE PROBLEMS THAT ARE NOW ON THE AGENDA, AND THAT THE GOOD RELATIONS WOULD CONTINUE. /// END ACTUALITY /// THE MAN IN CUSTODY AND FOUR OTHER AGENTS WERE ARRESTED WHILE ALLEGEDLY PLANTING LISTENING DEVICES LAST WEEK IN AN APARTMENT BUILDING IN BERN, WHERE ONE OF THE TENANTS WAS SUSPECTED OF BEING CONNECTED TO A PALESTINIAN OR LEBANESE MILITANT GROUP. THE FOUR OTHER AGENTS FLED SWITZERLAND AFTER LOCAL POLICE RELEASED THEM ON THE NIGHT OF THE INCIDENT. THE SWISS AND ISRAELI GOVERNMENTS WERE HANDLING THE INCIDENT QUIETLY UNTIL LEAKS FROM MOSSAD BROUGHT THE STORY TO LIGHT THIS WEEK, ANGERING BOTH ISRAELI AND SWISS LEADERS. THE MOSSAD DIRECTOR RESIGNED ON TUESDAY, PARTLY BECAUSE OF THIS INCIDENT BUT ALSO BECAUSE OF ANOTHER BOTCHED OPERATION IN JORDAN LAST YEAR. THAT PROBLEM CAUSED ISRAEL EVEN GREATER EMBARRASSMENT AND FORCED IT TO RELEASE DOZENS OF PALESTINIAN PRISONERS TO EASE THE ANGER OF KING HUSSEIN. ISRAELI OFFICIALS AND COMMENTATORS SAY THE SWITZERLAND INCIDENT IS NOT AS SERIOUS, BUT THEY ARE CONCERNED THAT IT WAS LEAKED BY MOSSAD OFFICIALS SWORN TO KEEP SECRETS. THE MOSSAD PEOPLE WERE APPARENTLY TRYING TO SPEED THEIR BOSS' RESIGNATION BECAUSE THEY WERE DISGRUNTLED ABOUT HIS PERFORMANCE AND OTHER INTERNAL ISSUES. (SIGNED) NEB/AWP/JWH 27-Feb-98 10:54 AM EST (1554 UTC) NNNN Source: Voice of America .