Washington Post reports Gulf crisis is boosting Israeli confidence over its relations with U.S.; Jerusalem sees crisis as Israeli windfall as Arafat is pushed further away from rapprochment with U.S. and Egypt [WP 8/6].
Arafat meets with Saddam Hussein in Baghdad [BVP, INA 8/5 in FBIS 8/6].
Islamic Conference Organization concludes Cairo meetings, issues statement supporting intifada, denouncing Israeli policy in O.T. [MENA 8/5 in FBIS 8/7].
16 Knesset members meet with pro. PLO Palestinian notables in Jerusalem, groups agree to work for peace; action is furthest any high-ranking group of elected Israeli officials have gone toward recognizing PLO as legitimate rpresentative of Palestinians [JDS 8/5, JPD 8/7 in FBIS 8/8; WT, MEM 8/6].
New York Times reports Israelis are among world's most heavily taxed people; that for economic reasons more than half the Americans who move to Israel give up and move back within 2 years [NYT 8/6].