Secy of State Christopher meets PLO Chmn. Arafat, Egyptian Pres. Mubarak in Alexandria, Egypt. Christopher rejects Arafat's demands for immediate negotiations over Jerusalem, warns PLO to adopt modern accounting procedures or risk delays in receiving international aid. Christopher proceeds to Jerusalem for talks with Israelis. (MENA 8/6, Jericho VOP 8/7 in FBIS 8/8; NYT, WP, WT 8/7)
Hamas, Marxist opposition lead 2-hr. protest by 700 at Gaza City Hall. Demonstrators demand municipal elections, free press, resignation of Gaza City Council. (WT 8/7)
Hizballah ambushes IDF patrol in southern Lebanon, killing 2 Israeli soldiers and wounding 3. Hizballah fires 12 katyusha rockets into "security zone," northern Israel following ambush, wounding 3 Israeli civilians, and attacks IDF/SLA posts. (NYT, WP, WT 8/7)