Bush admin. abandons policy of shooting down combat helicopters that Iraqi gov't. is using against rebels, saying they are not part of temporary cease-fire agreement. Admin. says helicopters will be attacked "only if they threaten U.S. forces or coalition forces" [NYT, LAT, WP 3/27].
German gov't. announces it will pay in full all monetary pledges it made to U.S. for Gulf war, increasing chances that U.S. will either "break even or make a small profit" on the war [LAT, WP 3/27].
Israeli group Peace Now publishes study asserting that gov't. has budgeted more than $500 million during current fiscal year on settlements in o.t. and related expenses. Highest official gov't. estimate on such spending is $200 million, given in report to U.S. earlier in the year [NYT 3/27].
Syrian officials says Damascus is planning to double its 20,000-member military force in Gulf as part of efforts by Arab nations opposing Iraq to strengthen security in region [NYT 3/27].
Iran and Saudi Arabia officially restore diplomatic ties [WT 3/27].
West Bank settler is killed near Ramallah in what Israeli army calls "planned attack" by Palestinians; IDF expropriates land near killing site to set up army camp [JDS 3/27 in FBIS 3/27; CSM 3/28; MET 4/9].
In Gaza, IDF paints yellow lines along major traffic arteries in Palestinian towns leading to main locations, such as Civil Admin. bldgs. Lines are intended to help direct soldiers and vehicles to safety in event of riots [YA 3/27 in FBIS 3/27].