After internal debate, Likud party says Labor must agree to "basic and essential" issues before Israeli-Palestinian negotiations can proceed: (1) E. Jerusalem Arabs be excluded from talks and (2) Israel reserves the right to walk out of sessions if it believes PLO is trying to control or direct discussions [NYT, WP, WT 3/6]; Labor rejects these terms [NYT 3/7].
U.S.-PLO dialogue continues in Tunis, where Hakam Balawi meets with Robert Pelletreau [BVP 3/7 in FBIS 3/9].
In op-ed piece to Washington Post former Sec. of State George Shultz writes "some form of confederation between Israel, the Palestinians, Jordan, and perhaps Egypt seems as necessary as it is inevitable" [WP 3/6].
Quoting "regional officials and experts," New York Times reports changes sweeping E. Europe represent major strategic setback for Palestinians and other Arabs [NYT 3/6].
Arub Academy, a 2-year teachers' college in W. Bank, is reopened by Israeli army [WP 3/7].