CAIRO: Rock star Peter Gabriel rescheduled his festival of music

without frontiers from Egypt to Israel yesterday after Cairo cancelled

the concert. Womad (World of Music, Arts, and Dance), an agency founded

by Gabriel in 1982 to promote arts from around the world, was to have

presented a concert at the Red Sea resort of Taba on Saturday. Its aim

was to bring together Arab and Israeli fans to see Gabriel, former

Velvet Underground member Lou Reed, and other acts, but Egypt called off

the event because of security concerns. Gabriel's agents have instead

moved the concert to Eilat in Israel, where it will be held in a car

park at the port. Gabriel said some musicians would hold a small party

in Taba to make up for the change of plan and said: ''It's very

important for me personally and for us to try to support the peace

process in any way we can.''

* Israel and the Vatican established full diplomatic ties yesterday,

six months after they signed a historic deal on mutual recognition and

reconciliation to end centuries of bitterness between Roman Catholics

and Jews.