New York Times writes Yasir Arafat's support for Saddam Hussein has created rift in PLO leadership, with senior PLO officials deeply divided over what policy to follow and disturbed over PLO's "very negative" image in Gulf states [NYT 8/14]; Los Angeles Times reports PLO "may have written themselves out of the diplomatic script" by supporting Iraq, stance will make it nearly impossible for resumption of U.S.-PLO dialogue [LAT 8/14].
Gulf crisis has strengthened P.M. Shamir's gov't., political right seen as gaining supporters in Israel; many Israelis are purchasingas masks in event of Iraqi chemical attack. Israeli official says "the mood of Israelis is that there is no point negotiating with Palestinians who support a leader like Saddam Hussein, who wants to wipe us off the face of the earth" [LAT 8/13].
U.S. ass't. sec. of state, John Kelly, meets in Cairo with F.M. Esmat Abdel Meguid to discuss Gulf crisis [MENA 8/ 13 in FBIS 8/13]; then Kelly flies to Damascus to meet with Syrian officials [SANA 8/13 in FBIS 8/14].
Hamas leaflet distributed in O.T. calls on Palestinians to take their battle to Israeli soil, and for Baghdad to attack Tel Aviv if Iraq is attacked by Western powers [WT 8/14].