Egyptian Pres. Mubarak asserts PLO must be involved in peace conference, issue of Jerusalem cannot be excluded from agenda. (MEM 8/8)
Israeli officials again indicate willingness to exchange Lebanese prisoners for seven Israelis captured in Lebanon. Number of Lebanese "under Israeli authority" put at 375. (NYT 8/9)
Forty-five member Islamic Conference Organization meeting in Istanbul confirms PLO as sole representative of the Palestinians. PLO Pol. Dept. Head Faruq al-Qaddumi meets with Saudi For. Min. Prince Sa'ud al-Faysal during conference, amove considered significant given frigid PLO-Saudi relations following Gulf war. In move signalling improved PLO-Iranian relations, al-Qaddumi also met with Iranian For. Min. 'Ali Akbar Velayati, Velayati invited PLO to participate in international conference on Palestine to be held in Tehran in October. (MEM 8/7, 8/9)
In another PLO-Iranian development, official Tehran Radio urged resumption of Gulf states' funding of PLO. (MEM 8/8)