Social/Economic/Political
Occupied Palestine/Israel: At official dinner at Knesset, P.M. Thatcher asks Israel to give Palestinians living under occupation "a greater role in managing their own affairs" including right to free elections [LT, LAT 5/26] and a better standard of living, calls occupation of West Bank and Gaza "temporary" [CT 5/26]. Meanwhile, P.M. Peres and Attorney General Yitzhak Zamir reportedly dispute over whether to prosecute Shin Bet Chief Avraham Shalom over his role in alleged suppressionf evidence and obstruction of justice in April 1984 beating deaths, while in Israeli custody, of 2 of 4 Palestinians arrested in bus hijack. Peres doesn't want to prosecute [NYT 5/26]. Israeli cabinet is split over issue [WP 5/26].
Military Action
Arab World: Israeli army bombards the village of Yatir (Bint Jubayl) in south Lebanon, killing 1, wounding 4 [OJ 5/26].