PLO chief Yasser Arafat conferred with a group of American Jews Tuesday in a meeting arranged by the Swedish government.

The five-member Jewish delegation was mostly from the International Center for Peace in the Middle East, a coalition of leftist groups in Israel and abroad.The peace center advocates relinquishing by Israel of Arab territory captured in the 1967 Mideast war, and many of its members urge the Jerusalem government to talk directly with the PLO.

The Jewish delegation met with Arafat at Haga Palace, an 18th-century government guest house usually reserved for heads of state or Sweden's most important visitors.

"They are still talking," a PLO official told waiting reporters more than two hours after the meeting began.

The Israeli government refuses to talk to the PLO and has urged its Jewish supporters in the United States not to do so.

The international chairman of the peace center is Israel's former foreign minister, Abba Eban. Its Israeli branch includes prominent members of Eban's left-leaning Labor Party.