In London, Arafat, Netanyahu meet separately with PM Blair, then each hold 2 mtgs. alone with Secy. Albright. Netanyahu discusses (but does not offer) the C-plus option, which he hints could make an 11% FRD possible, but Albright refuses to budge fr. 13.1%. All teams agree to stay an extra day for further talks. (IDF Radio, JT, JTV 5/4 in WNC 5/6; ITV 5/4, al-Ahram, MA, YA 5/5 in WNC 5/8; CSM, MM, NYT, WP, WT 5/5; WP 5/6; WJW 5/7; MEI, PR 5/8; JP 5/9)
In Petra, Jordan, Israel hold talks on ways to increase bilateral trade, Jordanian exports to PA areas. (RJ 5/4 in WNC 5/6)
Turkey tells Iran that it is ready to cooperate with Iran in all fields, especially in transportation, trade. (Anatolia [Ankara] 5/4 in WNC 5/6; Zaman [Istanbul] 5/5 in WNC 5/8) (see 5/3)
Iran calls on Egypt to improve bilateral ties. (VIRI 5/5 in WNC 5/8; IRNA 5/9 in WNC 5/12)
Tel Aviv mayor Roni Milo, one of Netanyahu's most powerful political allies, announces that he is planning to quit the Likud party when his term as mayor expires in 11/98; set up new centrist party; run for PM in the next elections, which must take place by 5/2000. (MM, NYT, WT 5/5; Corriere della Sera [Milan] 5/5, ITV 5/6 in WNC 5/8; MM 5/6; ITV 5/10 in WNC 5/13; JP 5/16)