Iraq is delaying departure of 2,300 Soviet advisers working at oil and military installation, saying Baghdad will impose economic penalties on Moscow for breaching contracts; high-level Soviet delegation arrives in Baghdad to discuss situation [NYT 12/17; CSM 12/18].
Three DFLP fighters are killed, 3 Israeli soldiers are wounded in gunfight in S. Lebanon [IDF 12/16 in FBIS 12/18; NYT, MEM 12/17].
Sec. Baker says he still hopes Washington and Baghdad could agree on dates for direct talks; reiterates he would go to Iraq anytime between 12/20 and 1/3 [NYT, LAT, WP 12/17].
U.S. agrees to sponsor UN Sec. Council resolution condemning Israel's deportation notices to 4 Palestinians, asking for international protection for Palestinians, and giving qualified support for international peace conference to settle Palestine question [NYT 12/18].
Israeli D.M. Moshe Arens pledges to deport more Palestinians from o.t., renewing policy that draws criticism from U.S. [NYT, WT, WP 12/17].
Hamas issues pamphlet claiming responsibility for 12/14 killings in Jaffa; police arrest at least 300 additional Palestinians [NYT 12/17].