Meeting in Baghdad, PLO Exec. Committee issues statement denouncing U.S. threat to end dialogue, reaffirming that it was faithful to all its pledges and commitments, and was not responsible for 5/30 attempted seaborne attack [BVP, BADS 6/6 in FBIS 6/7].
Four U.S. senators, Mack (R-FL), Lieberman (D-CT), Lautenberg (D-NJ), and Grassley (R-IA) introduce legislation urging Bush admin. to end U.S.,PLO dialogue [WP 6/7].
Bush admin. announces plans to sell $4 billion in arms to Saudi Arabia, including armored vehicles, anti-tank missiles, and improvement parts for Awacs; most American Jewish groups do not object to sale [NYT, WP 6/8].
Israeli authorities announce easing of residency regulations for Palestinians in O.T., saying spouses and children of O.T. residents will be allowed to remain even if they do not qualify for residence status themselves. Military spokesperson says some 250 Palestinians expelled for residency reasons from W.Bank between March and December 1989 will be readmitted [WP 6/7].