Israeli foreign ministry turns down compromise solution for expediting $400 million in U.S. loan guarantees; solution offered by ass't. sec. of state Dennis Ross stipulated Israel would receive funding in exchange for guarantee that money would be invested within green line, and that all expenditures would be documented for U.S. review [MAA 7/8 in FBIS 7/9].
After considering 6/28 letter from P.M. Shamir to Pres. Bush, admin. officials conclude that another attempto organize Israeli-Palestinian talks may be justified [NYT 7/8; MEM 7/9].
USSR informs Arab nations that its diplomats in Israel will visit Jewish settdements in O.T. to investigate if Soviet Jews are living there [KUNA 7/7 in FBIS 7/9]; USSR sends message to PLO conveying its anxiety over possible deterioration of Middle East situation [ADS 7/7 in FBIS 7/9].
In Ta'izz, Yemen, Pres. Mubarak, PLO chrmn. Arafat, and Pres. Salih meet to discuss Palestinian developments since suspension of U.S.-PLO dialogue [MENA 7/7 in FBIS 7/9].
Israeli radio reports 60 families of Soviet immigrants totalling about 160 people have settled in town of Qatzrin in Golan Heights in past few weeks, but additional immigration there has been halted due to housing shortage [JDS 7/7 in FBIS 7/9].