The Palestine Chronology

Officials fr. 39 countries, financial institutions meet at State Dept. in Washington to discuss Middle East regional finance. Israel, Egypt, Jordan, PA agree to work toward setting up regional bank despite EU, Saudi Arabian opposition at Casablanca conference 11/94. U.S. promises to lobby internationally for support for project. (NYT 1/12; JT 1/14 in FBIS 1/18)

Oman informs Israel it will delay establishment of diplomatic relations, apparently as a result of Alexandria summit 12/29. Israeli Dep. FM Beilin dismisses declaration as insignificant. (QY 1/11 in FBIS 1/12; MM 1/12; QY 1/17 in FBIS 1/17; MM 2/6)

Arafat meets with Egyptian Muslim Brotherhood officials, asks them to mediate btwn. PLO, Hamas. (AFP 1/11 in FBIS 1/12; Al-Sha`b 1/13 in FBIS 1/24; PR 1/15; Al-Musawwar 1/20 in FBIS 1/24)

UNRWA announces the following donations: $3.3 m. fr. Denmark for training centers in West Bank; $3.8 m. fr. Denmark for Gaza Hospital; $2.3 m. fr. Netherlands, $1.5 m. fr. Kuwait, $50,000 fr. Brazil, $40,000 fr. Portugal, $25,000 fr. Indonesia for UNRWA operations; $700,000 fr. Germany, $685,000 fr. Switzerland for education. (UNRWA News 1/11)

2 IDF soldiers lightly wounded when bomb explodes nr. their patrol at Kissufim crossing, Gaza. (MM 1/11)

Hizballah attacks IDF patrol in southern Lebanon. IDF, SLA respond, using planes, tanks, artillery. 4 Hizballah mbrs. killed; 2 IDF, 1 SLA soldiers, 3 civilians wounded. (IDF Radio 1/11 in FBIS 1/12; WP, WT 1/12)

Nayif Hawatma, leader of one of two factions now using the name DFLP, states DFLP, PFLP, Fateh have agreed on common stance concerning Palestinian participation in peace conference, including insistance on PLO's right to present a delegation comprised of Palestinians from within and outside the o.t., including delegates from E. Jerusalem. But the three groups failed to adopt a joint statement to this effect for presentation to the upcoming Palestine National Council (PNC) meeting. (Radio Monte Carlo 8/18 in FBIS 8/19)

Pres. Bush refuses to grant pardon to Jonathan Jay Pollard, convicted of spying for Israel. (JP 8/18 in FBIS 8/21)

Hizbullah leader Shaykh 'Abbas al-Musawi, other Hizbullah officials, arrive in Tehran for discussions with Iranian leaders on comprehensive Middle East prisoner-hostage exchange. (NYT 8/19)

Israeli for. ministry declares Ethiopia will allow remaining 2,600 Jews in Ethiopia to emigrate to Israel. (WP 8/17)

Iranian Oil Minister Gholam Reza Qaqzadeh-Kho'i presents Kuwaiti leader Shaykh Jabir al-Ahmad al-Sabah with letter from Iranian pres. Rafasanjani on protecting the rights of the Palestinian people. Letter follows recent diplomatic activity indicating increased PLO-Iranian ties. (Tehran Voice of the Islamic Republic of Iran 8/17 in FBIS 9/1)

Baghdad releases 2 U.S. POWs, 40 journalists, and hundreds of Kuwaiti POWs, as well as 1,181 who had been abducted by Iraqi troops. More than 6,300 American soldiers arrive in U.S. during 1st full day of nonstop homecomings [LAT, NYT 3/9].

During 2 1/2-hour meeting in Riyadh, Sec. Baker outlines to King Fahd 4 U.S. policy goals announced by Pres. Bush on 3/6. King agrees to take active role in support of U.S., but offers no specific commitments [NYT, LAT 3/9; RIDS 3/8 in FBIS 3/11; MET 3/19].

Iranian Pres. Rafsanjani expresses sympathy for rebels trying to overthrow Saddam Hussein; calls for Saddam to surrender "to the will of the people" [LAT, NYT 3/9].

In interview with journalists from Morocco, Egypt, Saudi Arabia, and Kuwait, Pres. Bush says PLO has "lost credibility" after siding with Iraq; Bush dismisses chances for U.S.-PLO talks any time soon [WP 3/10].

EC "troika" ministers meet with King Hussein to discuss Middle East peace proposals [ADS 3/8 in FBIS 3/8].

U.S. troops begin leaving Gulf; Def. Sec. Cheney says U.S. will return average of 5,000 troops per day over next few weeks [LAT, WP, CSM 3/8; MET 3/19].

En route to Saudi Arabia as part of 11-day Middle East tour, Sec. Baker says he will propose series of "confidence-building measures" between Israel and Arab states to open path to broader peace talks [LAT, NYT, WP, WT 3/8].

In Kuwait, at least 2 Palestinians have been shot dead and 5 others hospitalized from beatings and shootings, as Palestinians raise concerns about reprisals against their community in Kuwait [LAT, NYT, WP 3/8].

Israeli gov't. rejects Pres. Bush's call for solution to Arab-Israeli conflict that includes trading land for peace; F.M. David Levy says attempts to pressure Israel are not welcome [LAT, WT 3/8; JDS, IDF, PDS 3/7, MAA 3/8 in FBIS 3/8]; in separate statements, PLO and Egypt welcome what they call "positive elements" in Pres. Bush's 3/6 speech [AVP, MENA 3/7 in FBIS 3/8; MEM 3/7].

Palestinian journalist Taher Shriteh, jailed without charge on 1/28/91, is freed on bail after international campaign to gain his release (cf. 3/11) [NYT, MEM 3/8; AFP 3/8 in FBIS 3/11; MET 3/19].

House of Representatives votes to authorize $15.8 billion to pay for Gulf war, and also $650 million for Israel, and warns other nations that Congress "may consider appropriate action" if promised payments are not made [NYT, WP, WT 3/8].

Sec.-Gen. Perez de Cuellar selects Switzerland's ambassador to Washington, Edouard Brunner, asspecial Middle East envoy to begin new high-priority search for solution to Arab-Israeli conflict [WP 3/8].

Palestinian leaders representing Fateh, PFLP, and DFLP, but not Hamas, meet in Jerusalem with visiting EC "troika" representatives including Italian F.M. Gianni de Michelis; EC ministers also meet with Israeli P.M. Shamir and D.M. Arens, then depart for Jordan [JDS 3/7 in FBIS 3/8; FJ 3/11; MET 3/19].

Border policeman in Nablus is stabbed, wounded; attacker escapes and army imposes curfew on Nablus and adjacent refugee camps [JDS 3/7 in FBIS 3/8]; 30 Palestinians are detained in Jerusalem after IDF opens fire on demonstrators [JDS 3/7 in FBIS 3/11].

Syria and Saudi Arabia sign wide-ranging cooperation agreement which both nations say was sign of desire to foster closer relations [MEM 3/8].

Italian F.M. de Michelis is quoted as calling for "internal revolt in the Palestinian [resistance] movement" now that PLO has "ruled itself out" of peace negotiations [MEM 3/7].

U.S. forces round up more than 1,400 Iraqi soldiers-including a brigadier general-from island of Faylakah, the last piece of Iraqi-held Kuwaiti territory. Allies hold about 63,000 Iraqi POWs [LAT 3/4].

Refugees crossing into Iran and Syria from Iraq report demonstrations against Saddam Hussein has spread from Basra to 3 other cities in southern Iraq [NYT, LAT, WP, WT 3/4].

At UN, U.S. and allies offer to speed the flow of food and other relief supplies into Iraq after nonaligned nations press for formal easing of sanctions [NYT 3/4].

Pres. Mitterrand makes what diplomats describe as his clearest call yet for a Palestinian state [LAT 3/4]; Mitterrand also calls for international peace conference on Middle East [WP, MEM 3/4].

Presenting 9-item postwar agenda, Pres. Mubarak urges fresh start for Arabs, says Egyptians have no quarrel with Iraqi people and will help rebuild Iraq [LAT, NYT, WP, MEM 3/4].

UNLU issues call number 68, calling for "increased rallying around the PLO and adherence to it as the sole legitimate representative of the Palestinian people" [AFP 3/3, JPD 3/4 in FBIS 3/5; AVP 3/5 in FBIS 3/6; MEM 3/5; JPI 3/16].

Israeli jets fly through Lebanese army machine gun fire and bomb Fateh base in southern Lebanon; it is 1st air strike since Gulf war ended [MEM 3/4; MET 3/12].

Israel lifts curfew on Gaza Strip for 1st time since 16 January, Gaza fishermen are permitted to put to sea; several towns and villages in W. Bank remain under curfew [MEM 3/4].

In radio address, Saddam Hussein makes public his commitment to withdraw from Kuwait. Pres. Bush says promise is inadequate, presses for virtual surrender, and orders allied forces to continue attacks [BADS 2/26 in FBIS 2/26; MEM 2/26; NYT, LAT, WP, WT 2/27; MET 3/12].

Allied forces enter Kuwait City, as Iraqi troops are reported in headlong retreat across Kuwait; fighting continues at Kuwait City airport; U.S. troops reach Euphrates River in Iraq, cutting off escape routes for Republican Guards; other allied forces are closing off additional escape routes for Iraqi troops; 25 to 30 mile long column of Iraqi tanks, personnel carriers, and trucks heading north on road to Basra is repeatedly attacked by U.S. warplanes [MENA 2/26 in FBIS 2/27; NYT, LAT, WP, WT, CSM 2/27].

SCUD missile lands in uninhabited area of Qatar, another is destroyed over Bahrain [MEM 2/26].

Emir of Kuwait declares martial law, says it will last for 3 months, in 1st step toward reestablishing his rule [NYT, WP, WT 2/27; MET 3/12].

U.S. command revises death toll in 2/25 SCUD attack on barracks, saying missile killed 28 U.S. soldiers and wounded more than 100 [NYT, WP 2/27; MET 3/12].

Military law specialists say "rules of war" clearly permit allies to attack retreating Iraqis until they law down their arms; claim definite distinction between retreat and surrender [NYT, WP 2/27].

Egypt, Kuwait, Soviet Union, and European members of coalition say Saddam Hussein must accept all 12 UN Sec. Council resolutions before war can end [KUNA 2/26 in FBIS 2/27; NYT, WP 2/27]; PLO calls on UN Sec. Council to bring about immediate ceasefire [TDS 2/27 in FBIS 2/27; AVP 2/27 in FBIS 2/28].

Allies effectively stop counting Iraqi POWs because so many have been taken since ground war began. Officials stop count at 26,000 but estimates are up to more than 30,000 [LAT, WP 2/27].

P.M. Shamir vows to resist concessions in postwar Middle East peace effort [IDF 2/26 in FBIS 2/27; MEM 2/26; WP, WT 2/27].

Yasir Arafat meets in Algiers with Pres. Benjedid; Arafat says U.S. aims to destroy Iraq [AGS, AFP 2/26, APS 2/27 in FBIS 2/27; APS 2/27 in FBIS 3/1].

European Community announces it is freezing contacts with PLO in light of Arafat's pro-Iraqi stand. EC statement says, however, that the decision "in no way calls into question the role of the PLO or the rights of the Palestinian people" [MEM 2/26].

Jordanian Cabinet issues statement accusing allies of exceeding UN mandate [MEM 2/27].

Pres. Bush says 2/18 Soviet proposal for Iraqi withdrawal from Kuwait "falls well short of what would be required" to end war with Iraq [NYT, LAT, WP, WT, CSM 2/20].

F.M. Aziz meets in Tehran with Iranian Pres. Rafsanjani; Baghdad gives no formal response to Soviet plan but reiterates 2/15 proposal. Iranian F.M. Velayati says he believes Iraq is "ready to withdraw from Kuwait unconditionally" [NYT, WP 2/20].

UN Sec. Council authorizes Red Cross to make emergency deliveries of water purification equipment to Iraq [NYT 2/20].

Allied planes attack targets in Iraq and Kuwait; single SCUD missile is launched at Israel, no casualties; U.S. A-10 plane is lost in combat, bringing American total to 22, and allied total to 31; U.S. military official says that Iraqi troops in Kuwait and southern Iraq are suffering "horrendous' casualties [JAA, JDS 2/19 in FBIS 2/20; NYT, LAT, WP 2/20; MET 3/5].

In separate forums, Soviet F.M. Bessmertnykh, envoy Primakov, and spokesman Ignatenko argue against beginning ground offensive against Iraq, saying its effect would only be enormous suffering and destruction; they add that Soviet proposal makes ground war unnecessary [NYT, WP 2/20].

U.S. commander Gen. H. Norman Schwarzkopf says Iraqi military machine is on verge of collapse, losing about 2 battalions of tanks a day to allied air strikes [LAT, WP 2/20].

Pope John Paul II summons bishops from countries involved in Gulf war, including U.S. and Iraq, to unprecedented peace-seeking conference from 3-4 March at the Vatican [MEM 2/19; LAT 2/20].

Moving to contain diplomatic fallout from its support for Iraq, PLO says it accepts the "spirit" of UN Sec. Council resolution 660; PLO also renews its call for talks with Israel [AFP 2/19 in FBIS 2/19].

In Luxembourg, EC "troika" foreign ministers decide to avoid talks with Yasir Arafat in their planned series of Middle East trips (cf. 2/21) [MEM 2/20].

U.S. State Dep't. reiterates its criticism of Israel's policy of administrative detention in light of Taher Shritch case [NYT, MEM 2/201

Arab members of coalition end 2-day meeting in Cairo, find Baghdad's conditions for Iraqi withdrawal from Kuwait unacceptable, call on Saddam to leave "without conditions or strings" [MENA 2/16 in FBIS 2/19; NYT 2/17]; countries also propose economic and defense arrangements to improve Middle East postwar security [WP 2/17], and reaffirm support for Palestinian state, without mention of PLO [MEM 2/18].

Soviet Union concludes conditions set by Baghdad for Iraqi withdrawal from Kuwait would render its 2/15 proposal meaningless [NYT, WP 2/17].

2 U.S. A-10 fighter-bombers are short down over Kuwait: Iraq says 130 civilians killed on 2/14 when British bombs hit marketplace in Falluja [AFP 2/16 in FBIS 2/19; NYT 2/17]. Iraq launches 2 SCUD missiles at southern Israel; no damage [JAA 2/16 in FBIS 2/19; NYT, MEM 2/18].

Likud supporters criticize MKs Dedi Zucker and Chaim Oron for their 2/13 report on settlement construction (see JPS 79), saying report led U.S. admin. to delay granting $400 million in housing loan guarantees [IDF 2/16 in FBIS 2/19].

As Israeli authorities continue selectively to release Palestinian workers from war-induced curfew, many Palestinians are finding Soviet Jewish immigrants have taken over their jobs, according to New York Times [NYT 2/17].

PLO revolutionary courts condemn to death, then execute, 20 Fateh members who had rebelled againstheir commander earlier in the week [NYT 2/17].

Yasir Arafat arrives in Amman from Iraq to meet King Hussein [NYT 2/17]. 

2 U.S. Apache attack helicopters sold to Israel for $350 million each are met at air base by P.M. Shamir, who says U.S. is "obliged" to maintain Israel's military advantage over its Arab neighbors. Sale is part of deal that includes 16 additional Apaches, 60 F-16 fighter-bombers, 10 Sikorsky helicopters, and Stinger missiles [LAT 9/13].

Iran's "supreme leader" Ayatollah Khamenei declares jihad against U.S. forces in Saudi Arabia, calls American policy "greedy, bullying, and shameless"; denounces Saudis for inviting Americans in, he states: "a force that enters a country to defend it will grow to impose its will on the host and to humiliate it" [LAT, NYT, WT, WP, MEM 9/13].

PLO Exec. Committee releases statement in Tunis on Gulf situation, stressing linkage issue and regretting U.S. stance; Arafat meets with King Hussein on political solutions to Gulf crisis "within an Arab framework" [MEM 9/13].

In response to lawsuit brought by Israeli gov't, state supreme court in New York issues temporary order blocking U.S. publication of Victor Ostrosky and Claire Hoy's book By Way of Deception. A Devastating Insider's Portrait of the Mossad [NYT, WT, WP 9/13].

Pres. Asad, preparing for meeting with Sec. Baker on 9/14, says U.S. troops will leave Saudi Arabia when crisis is over: "The problem now is not the presence of foreign troops in the gulf. The problem is Iraq's invasion of Kuwait.... When it is over I am sure that all foreign troops will withdraw" [NYT, WT 9/13].

In Mecca, International Islamic Conference attended by 350 Islamic scholars from 80 countries ends after 3 days of heated debate; communique calls for Iraqi withdrawal from Kuwait, finds foreign troop presence in Saudi Arabia legitimate under current circumstances but emphasizes that they must leave region as soon as Iraq withdraws; calls for creation of permanent Pan-Islamic force for future conflicts  [SPA 9/13 in FBIS 9/13; LAT, WP 9/14].

On tour of Middle East, Chrmn. of U.S. Joint Chiefs of Staff, Gen. Colin Powell, arrives in Riyadh on 2-day visit to Gulf [WAKH 9/13, 9/14, SPA 9/13 in FBIS 9/14].

Speaking before European Parliament, Italian F.M. Andreotti says Gulf crisis could make more difficult a solution to Palestinian and Lebanese conflicts; he repeats EC's support for UN resolution demanding Israeli withdrawal from W. Bank and Gaza [MEM 9/13].

EC passes resolution 301 to 37 condemning Iraqi invasion, calling for withdrawal, but stating that only diplomatic solution can resolve crisis [MEM 9/13].

In testimony to House Foreign Affairs Committee, Sec. Baker calls for creation of U.S.-led NATO-style security structure in Middle East to prevent renewed Iraqi aggression even if present crisis ends without warfare (cf. 9/5) [LAT, NYT, WP, MEM 9/5; CSM 9/6].

Speaking in Vladivostok, Soviet F.M. Shevardnadze calls for international conference on the Middle East that would include the Gulf crisis, the Arab-Israeli conflict, and Lebanon [WT, WP 9/5]; Israel sharply rejects the idea [JPI 9/15].

Washington Post reports that U.S. commander in Saudi Arabia Gen. H. Norman Schwarzkopf complained to Defense Dep't and White House about Saudi Lt. Gen. Khaled bin Sultan's remarks on 8/29 that any decision to use U.S. forces deployed in Kingdom would have to follow consultations between King Fahd and Pres. Bush. Bush conveyed to Saudi ambassador "military concern that U.S. forces be unquestionably under U.S. command," and ambassador reiterated what Saudis contend was original agreement between Fahd and Def. Sec. Cheney that U.S. forces were invited to Kingdom to defend Saudi Arabia from attack by Iraq [WP, MEM 9/4].

Cheney says U.S. would "consult closely" with Saudis before launching offensive action from Saudi territory, but stops short of saying whether Saudi approval would be required [MEM 9/5].

Bush admin. begins asking economic allies for at least $25 billion to help defray American military expenses and support countries that have been hurt by embargo on Iraq and Kuwait [LAT, WP 9/5].

Israeli finance minister Yitzhak Modai says if U.S. forgives Egypt's debt, Israel will demand that most of its $4.6 billion debt also be erased [LAT 9/5; MET 9/18].

Qatar expels more than 70 Palestinian families, including several PLO members, apparently because of Palestinian support for Iraq [NYT 9/5; MET 9/18].

Media report of growing crisis in Jordan as hundreds of thousands of refugees flee Kuwait and Iraq for the Hashemite kingdom [NYT, WP 9/5; MET 9/18].

As'ad al-As'ad, ass't sec.-gen. of Arab League, is named as acting sec.-gen. until replacement for Chedli Klibi is determined [TDS 9/4 in FBIS 9/5].

Saudi D.M. Prince Sultan says his country could not be used as staging ground for U.S. troops to rescue hostages or launch offensive strikes against Iraq: "The Kingdom of Saudi Arabia is not a theater for any action that is not defensive for Saudi Arabia" and "war will be the last option" [NYT, WP 9/2; MEM 9/3].

Pres. Bush, Pres. Gorbachev announce they will meet in Helsinki on 9/9 with the Middle East on the agenda [NYT, WP 9/2].

Arab League Council of Foreign Ministers (attended by 13 of 21 members) announces resolutions on Gulf crisis issued at 2-day meeting in Cairo that call for: Arab solution based on League charter; respecting civilians and property; foreign nationals to be allowed to leave; reopening of diplomatic missions in Kuwait; and compensation for Kuwait. Any peace initiative not coming from League is rejected, an implicit reference to efforts by Jordan, PLO etc. [MENA 9/1 in FBIS 9/4; WP 9/2; MEM 9/3; JPI 9/8].

PLO leadership meets in Tunis, issues formal statement accusing Mubarak of personal responsibility for anti-Palestinian campaign in semi-official Egyptian media [MEM 9/3; FJ 9/10].

White House formally announces sale of 24 jet fighters, 150 tanks, other hardware worth $2.2 billion to Saudi Arabia; sale causes concern among pro-Israel lobby and its congressional allies [MEM 8/29; LAT, CSM 8/30; WT 8/31; MET 9/11].

On tour of Gulf states, British defense secretary Tom King says he's sending 4 additional warships - 3 mine-hunters and 1 destroyer - to the Gulf [LAT 8/30].

U.S. C-5 military transport aircraft carrying supplies to Gulf troops crashes shortly after takeoff in W. Germany, killing 12 soldiers [MEM 8/29; NYT, LAT, WT, CSM, WP 8/30].

10 of 13 OPEC nations, meeting in Vienna, endorse temporary production increase to make up for supplies lost because of Gulf crisis; Iran opposes agreement, Libya and Iraq are absent [AFP 8/29 in FBIS 8/29; NYT, WP 8/30; CSM 8/31].

21-member World Islamic Council denounces Saudi Arabia for inviting "anti-Islamic U.S. troops" into Middle East [INRA 8/29 in FBIS 8/30].

Speech read on behalf of Yasir Arafat to meeting of UN nongovernmental organizations in Geneva says PLO does not take sides in Gulf crisis, links Iraqi withdrawal from Kuwait to other "occupied" lands-Lebanon, Golan, and Palestine [AVP 8/29 in FBIS 8/30].

Qatar has expelled 20 PLO officials since beginning of Gulf crisis, according to Yasir Abd Rabbo [AFP 8/29 in FBIS 8/30]; Abd Rabbo also states that breaking the economic blockade against Iraq is an Arab responsibility [RAY 8/30 in FBIS 8/31].

Hamas distributes leaflet in O.T. calling for Iraqi withdrawal from Kuwait and Kuwaiti self-determination; UNLU also issues leaflet continuing its demand for withdrawal of foreign troops from Saudi Arabia and calls for strike on 9/26 "in solidarity with the Iraqi people" [JPD 8/30 in FBIS 8/30].

Japan unveils aid package to help finance international effort against Iraq, but package  draws criticism from U.S. because of absence of tangible aid to military buildup. Japanese program offers loans to Egypt, Turkey, and Jordan; sending 100 doctors, refrigeration equipment, and water to region (cf. 8/31) [MEM 8/29; NYT, WT 8/30].

Bethlehem Mayor Elias Freij says he supports UN formula for unconditional Iraqi withdrawal from Kuwait, believing it to be the only way to head off a new disaster for Palestinians [WP 8/301.

Military Action:

Explosion 400 yards from Lebanon Beach Hotel in.Khalde delays talks for 30 min., Israel charges was 107mm Katyusha rocket fired from behind Marine lines in Hay el-Sellom, Phalange says was rocket-propelled grenade, Lebanon state radio says was 120mm mortar, Lebanese Army says shell was detonated by explosives on the spot; IDF tries to use road under MNF jurisdiction.

Casualties:

1 IDF at checkpoint near hotel wounded; IDF detains 4 Lebanese in Khalde area, cuts off road.

Political Responses:

Israel/ Occupied Territories: Government defeats 2 no-confidence motions on social policies put forward by Labor and Democratic Front following release of survey that shows 300,000 Israelis live under poverty line; General Amir Drori criticizes US Marines for failing to prevent guerrilla infiltration from its sector; General Yaacov Even, IDF chief spokesman, says Marines are buffer for PLO's hit and run attacks, that since Dec. 22, 9 incidents near US lines resulted in 1 IDF killed, 25 wounded; Government denies reports that relations with Ethiopia have improved and Israeli advisers are now in Addis Ababa; week long Canal Founders Conference of Israel Bonds begins, attended by 200 Jewish leaders from US and Canada; security forces arrest 2 from Gaza who admit to Jan. 8 Tel Aviv grenade attack, say they are members of Fateh and were trained in Egypt.

Palestinians/ Lebanese: After 6 hours, negotiations stalled on Israel's demand to have IDF remain in security installations in Lebanon and nature of future relations, with Lebanon proposing protocol accord to regulate ties.

Arab Governments: King Hussein returns to Jordan from tour of Kuwait, Bahrain, Qatar and Oman.

US and Other Countries: State Department denies press reports that Reagan is prepared to sign document drafted by National Security Council, State and Defense Departments to cut off military aid to Israel; Reagan Administration says it is extremely concerned over slow pace of Lebanon negotiations, following Habib's return to US, with 2 stumbling blocks of normalization and surveillance stations; National Executive Committee of the Zionist Organization of America is told by Senator Carl Levin (D-MI) that Reagan Administration is not a mediator in the Middle East but coddles Saudi Arabia and entices King Hussein to peace table with airplanes and missiles, that it was never disclosed publicly that intelligence officials told the State Department that armed PLO members remained in Beirut; ZOA President Ivan Novick says Reagan Administration uses West Bank settlements to divide American Jews, but Jewish settlements are valid based on right to security and self-defense, historical connection, and according to international law Israel holds better title to this land; British press reports that secret documents accidently released recently indicate that Britain dissuaded Jordan, Syria and Iraq from concluding peace agreements with Israel in 1949.

Military Action:

Druze and Phalange militia exchange fire in Chouf; US Marines on full alert and deploy in firing positions as IDF patrol confronts Marines at checkpoint near Lebanese University; IDF armored car backs into barbed wire fence at another Marine checkpoint; US Embassy expresses concern over incidents to Israeli Government.

Political Responses:

Palestinians/ Lebanese: Following week of meetings in Tripoli, Libya, PFLP, DFLP, PFLP-GC, Saiqa and PSF statement rejecting Fez and Reagan plans and any form of recognition or negotiation with the expansionist Zionist entity, adherence to armed struggle to liberate Palestine and all the occupied Arab territories; Lebanese- Israeli-US negotiators, meeting for 51?2 hours at Khalde, discuss ending state of war and security zone, make enough progress to turn issues over to subcommittee of Antoine Fattal, Eli Rubenstein, Christopher Ross, and form another subcommittee to deal with timetable for withdrawal of troops.

Arab Governments: Egyptian President Mubarak says Arabs must act on Reagan plan by end of year, PLO Chairman should recognize Israel, unilaterally if necessary; Syrian Foreign Minister Khaddam tours Bahrain, Saudi Arabia, Kuwait, UAE and Qatar; King Hussein returns to Jordan from talks with King Fahd in Saudi Arabia.

US and Other Countries: Habib and Draper will divide responsibilities to accelerate the peace process; State Department refuses to qualify last week's statement suggesting possibility of shortening the autonomy period; US says USSR has sent 90 aircraft, mostly MiG-21s, and 12 SA-5 missiles to Syria, which would be particularly effective against E2-C Hawkeye surveillance aircraft used by Israel in Lebanon war; 2 US soldiers in multinational force in Sinai wounded in mine explosion near Ofira; former Presidents Carter and Ford, in joint article, say that Israeli occupation of West Bank and Gaza is a major obstacle to any moderate Arab initiative for peace in the Middle East, and urge King Hussein to join autonomy talks; West German Foreign Minister Genscher attacks Israeli settlement policy, does not recognize the PLO or support an independent Palestinian state, but supports the June 1980 Venice Declaration that the PLO be involved in the peace process.