Arab World: Egyptian Pres. Mubarak and Israeli P.M. Peres meet in Alexandria (first time in five years Egyptian and Israeli leaders have met); Egypt returns ambassador to Israel, withdrawn after 1982 Israeli invasion of Lebanon; two states agree on arbitration over Taba; discuss Palestinian issue (NYT, WP 9/12). In Tunis, PLO Chairman Arafat meets EC representative Claude Cheysson (FBIS 9/14). Islamic Jihad denies it kidnapped American Frank Reed in West Beirut (CSM 9/12).
Other Countries: French government rejects demands for release of convicted terrorists in exchange for ending bomb campaign (WP 9/12). Washington Post reports Israeli Trade Minister Ariel Sharon visited Istanbul secretly for three days in July (WP 9/11).
Arab World: IDF and SLA fight Shi'i guerrillas in south Lebanon; five UNIFIL soldiers wounded in crossfire; IDF use helicopter gunships and artillery against Shi'a who attacked SLA outpost.