Foreign Minister Shimon Peres admitted that the issue of the Arab \"refugees\" (up to 3.7 million people, of whom more than 95% are the children and grandchildren of those who actually left Israel in 1948 because of the war) was raised during his meetings in Cairo yesterday, but not by him. \"Egyptian President Hosni Mubarak was the one who brought it up,\" Peres said. He and Prime Minister Sharon agreed that these meetings with Arafat would continue. Sharon and Peres will meet with the Likud Knesset faction this afternoon and deliver a diplomatic/security report.