U.S.-Israel settlement dispute appears to escalate as P.M. Shamir insists that new Jewish neighborhoods in E. Jerusalem would be expanded with "as many Soviet Jewish immigrants as possible" [WP 3/6].
UNLU issues leaflet no. 53, entitled "the women's call"; JDS reports leaflet does not break any new ground [JDS 3/6 in FBIS 3/6].
PLO delivers note to Washington, saying it rejects Israeli attempts to ignore issue of E. Jerusalem inany Palestinian-Israeli dialogue [NAH 3/5 in FBIS 3/7].
Pres. Bush meets with Seymour Reich, pres. of the Conference of Presidents of American Jewish Organizations; admin. officials say Bush "reiterated that U.S. policy toward Jerusalem is unchanged." Reich says Bush told him connection of E. Jerusalem to W. Bank may have been "unfortunate linkage" [WP, LAT 3/6].
In op-ed piece in New York Times, Ariel Sharon explains he resigned from Israeli gov't. because current peace efforts "reward the Palestinians for their terrorism and increase the risks of war" [NYT 3/5].