New York Times reports Iraq is encountering increasingly serious shortages in the gov't. food rationing program; declines of 25% to 50% in amount of basic food items are reported [NYT 1/2].
4 Palestinians are killed in clashes with IDF as many defy curfews to celebrate 26th anniversary of 1st military operation of Fateh [JPD 1/2 in FBIS 1/2; NYT, LAT, WT, WP 1/2; LAT 1/3].
In New Year's speech, Pres. Mubarak warns Saddam Hussein that "the decision for peace rests in your hands" and that wrong decision would mean "sacrificing the lives of hundreds of thousands of men, women, and children" [NYT 1/2]; Iraq rejects Mubarak's warning [LAT 1/2].
In Washington, American Civil Liberties Union and 51 other organizations call on Congress to adopt resolution to prevent Pres. Bush from starting war without congressional approval [LAT 1/2].
Arab League completes its move to permanent headquarters in Cairo (cf. 1/2) [KUNA 1/2 in FBIS 1/3].
Israeli Labor party doves propose initiative calling for unconditional withdrawal of Israel from Gaza Strip within 2 years after approval of plan; Gaza would be handed over to UN or local gov't. [MEM 1/2].