Probable PM-elect Yitzhak Rabin drops call for 1-year settlement freeze, says "no new settlements" will be established while peace negotiations are underway. Labor's guidelines for the new govt. also retreat from Labor positions on autonomy, elections, res. 242, reportedly to draw right-wing parties into emergent governing coalition. (Yedi'ot Aharonot 6/30 in FBIS 6/30; NYT 7/1)
Two senior Israeli fin. min. officials are installed at construction and housing min. to oversee the latter's financial activities, inspect contracts for compliance with finance min. budget. (Qol Yisra'el 6/30 in FBIS 6/30)
PLO political advisor Nabil Shaath and Palestinian delegation spokeswoman Hanan Ashrawi meet with German econ. min. Juergen Moellemann, min. of state for for. aff. Helmut Schaefer, hold "constructive and substantive" talks on economic aid for Palestinians. (MM 7/1)
Col. Anwar Madi, commander of PLO forces in S. Lebanon, is assassinated in 'Ayn al-Hilwa refugee camp near Sidon. Madi was chosen for the post on 6/8. Killing follows assassination of PLO security chief Atif Basaysu in Paris on 6/8. (NYT, WP 7/1)
Hizballah announces it will participate in planned Lebanese elections. (MM 7/2)
Twenty-seven U.S. senators end letter to Secy. of State Baker expressing concern over May State Dept. statements regarding UN Res. 194 on Palestinian right of return. (MEPARC 7/92)