Jordanian Information M Mu`asher meets with PM Netanyahu. (JT, RJ 12/13 in WNC 12/16)
Israeli cabinet reinstates large subsidies (incl. tax brakes, business grants) for West Bank settlers. The U.S. says the move is "troubling," "clearly complicates the peace process." (MM 12/13; MA 12/13 in WNC 12/16; IGPO 12/13, ITV 12/16 in WNC 12/17; LAWE, NYT, WP, WT 12/14; IGPO, WP 12/15; CSM, MM, WT 12/16; MEI, PR 12/20; JP 12/21)
In Gaza, 15,000 Palestinians attend antisettlement rally called by Hamas and approved by the PA. Hamas spokesman Mahmud Zahhar announces that Hamas soon will open political offices in Gaza (with PA permission) as a transitional step for "greater participation in public life"; West Bank offices are planned. (NYT 12/14; CSM 12/16; ITV 12/17 in WNC 12/19; MEI, PR 12/20; al-Quds 12/20 in WNC 12/26; JP 12/21)
After France drops its threat to veto him, UNSC chooses Ghana's Annan, current undersecy. gen. for peacekeeping operations, for secy. gen. The full UN General Assembly (UNGA) is expected to officially elect him 12/17. (NYT, WP, WT 12/14; CSM 12/16; MEI 12/20) (see 12/6)
Katayusha rockets are fired fr. s. Lebanon into n. Israel, in the first crossborder attack since the wide-scale Israeli-Lebanese fighting in 4/96. No one is injured, but a cow is killed. Democratic Front for the Liberation of Palestine (DFLP), Hizballah, PFLP, Popular Front for the Liberation of Palestine-General Command (PFLP-GC) deny responsibility. (RL 12/13, RL, RMC 12/14, RL 12/15 in WNC 12/17; NYT, WP 12/14; RMC 12/15 in WNC 12/16; RL 12/15 in WNC 12/17; RL 12/16 in WNC 12/18; JP 12/21)