The Palestine Chronology

Pres. Bush states U.S. aid to assist resettlement of Soviet Jews in Israel should not be linked with freeze in Israeli settlement building, but calls such building "counterproductive," adding that U.S. is "not giving one inch on the settlements question." Statement comes in wake of continued controversy over Israeli refusal to halt settlement activity in face of American pressure. U.S. anxious to obtain Israeli pledge to cease building settlements prior to proposed peace conference. (NYT, MEM 7/2; WP 7/3)

Lebanese army moves into Sidon and surrounding area as scheduled, establishing its first presence in area since 1975. Army's action comes as continuation of central government policy of disarming militias and deploying army throughout Lebanon. Thousands of residents flee, fearing PLO army clash. PLO, army commanders confer near Sidon over ways to avoid conflict. PLO refuses to disarm as long as Israel still controls parts of S. Lebanon: also seeks discussions on Palestinians' rights in Lebanon. Government welcomes talks, but only after deployment of army in Sidon area. (MEM 7/1, 7/4)

Cmdr. of Israeli-backed South Lebanon Army Antoine Lahad states willingness to release 300 Lebanese prisoners held by SLA in return for Israelis held by Islamic, Palestinian factions. (NYT 7/4)