"WASHINGTON, March 28 - President Reagan said today that it would be ''most unwise'' for the United States to move its embassy in Israel from Tel Aviv to Jerusalem, and he strongly suggested that he would veto legislation in Congress to require such a step.
In an interview, Mr. Reagan said a bill requiring the embassy to be moved ''should never have been introduced in Congress.'' He said the disposition of Jerusalem, the West Bank of the Jordan River and other areas ''must be negotiated'' between Israel and the Arab countries. Asked if he would veto legislation on the embassy, the President said: ''I am hoping I won't have to. But like the several previous Presidents before me, I think that that is a most unwise thing.''"