The Palestine Chronology

PLO-Israel talks in Cairo on Palestinian autonomy recess without completing draft accord for discussion by PLO Chmn. Arafat and Israeli FM Peres. Sides remain divided over size of Jericho area, security for Israeli settlers, and control of border crossings. (MENA 1/27 in FBIS 1/28; NYT, WP 1/28; WP 1/29)

Israeli PM Rabin welcomes King Hussein's offer of public mtg., calling gesture "important progress." (IDF Radio 1/27 in FBIS 1/28; WP, NYT 1/28)

Central Bank of Jordan Gov. Muhammad Nabulsi says Amman has given go-ahead to 5 banks to open branches in West Bank and Gaza pursuant to 1/7 PLO-Jordan accord. (MM 1/28)

Israel announces it will purchase 20 F151 fighter-bombers, valued at $2 b., fr. McDonnell-Douglas Corp. of U.S. Pentagon spokeswoman says congressional approval of sale expected. (MM 1/28)

Military Action:

Heavy shelling by PSP militia, rockets and artillery fall in area from East Beirut north to Jounieh, and in airport area; Pentagon reportedly decides to keep battleship New Jersey stationed off Lebanon indefinitely.

Casualties:

5-7 killed, 30 wounded in East Beirut; LF militiamen kidnap Shi'ite civilians south of Beirut, Amal militiamen kidnap 60 Christian employees of MEA from buses on way to airport, later released; Beirut power station damaged, electricity rationing resumes.

Political Responses:

Israel/ Occupied Territories: 36th anniversary of UN vote to partition Palestine marked by demonstrations and protests throughout West Bank; IDF disperses Nablus demonstration with teargas; large demonstration in support of Arafat at Birzeit; settler injured by stone near Beit Omar, Hebron, 6 suspects arrested; estimated 500 Jewish settlers hold protest march through Nablus under heavy IDF protection, settlers establish command post near Tomb of Joseph in Nablus, say they will remain there until IDF takes stronger measures against Palestinians, chief-of-staff Levy flies in for meeting; President Herzog says IDF prisoners released by PLO had surrendered shamefully, press and military personnel question enthusiastic reception given to returnees.

Palestinians/ Lebanese: Arafat says he will leave Tripoli.

US and Other Countries: Reagan and Shamir end talks, agree on joint political-military committee, to begin meeting in January, to enhance Israeli-US cooperation, objectives include military planning, maneuvers, prepositioning of US equipment in Israel; other areas of agreement are: US willing to negotiate accord on duty-free trade and to permit $550 m. military aid to be spent on development of Lavi fighter, including $250 m. to be spent in Israel; US and Israel reaffirm commitment to May 17 Israeli-Lebanese troop withdrawal agreement; US reportedly will make cluster bomb technology available to Israel for production there, Shamir and Arens agree in principle not to use the weapons against civilians.