PLO Chmn. Arafat returns to Palestine, entering Gaza Strip at Rafah border crossing and proceeding to Gaza City. 3,000 Palestinian police detailed to provide security for 3-day visit. Arafat addresses crowd of 30-100,000 in Gaza City's Square of the Unknown Soldier, honoring intifadah casualties, Arab states, declaring intention to expand Palestinian self-rule in West Bank. Arafat vows to seek release of Hamas leader Shaykh Ahmad Yasin. (MM 7/1; NYT, WP, WT 7/2; JP 7/9)
WSJ reports that Bethlehem is now Muslim, and mosques in once-predominantly Christian city fr. 5 to 70 since 1970. (WSJ 7/1)
East Jerusalem Palestinian found shot to death. "Sword of David" group claims responsibility, citing revenge for killing of Israeli, opposition to Arafat visit. (NYT 7/3)
JP publishes poll showing 33.8 % of Israelis oppose all settlements, 25.2 % support them. Poll also shows 59 % support continued talks with PLO. (MM 7/1)