Social/Economic/Political
Occupied Palestine/Israel: Peres and Shamir reach compromise on new government, ending three-day deadlock (WP, NYT 10/17). Israeli Foreign Ministry delivers protest to Egyptian ambassador on PLO statement of involvement in 10/15 bombing in Jerusalem announced from Cairo (NYT 10/17). Israeli police arrest two Palestinians in connection with 10/15 bombing (JP 10/20). Israel bans suspects (residents of West Bank) from crossing Jordan River into Jordan (NYT 10/17).
Military Action
Arab World: Israeli Phantom jet shot down over Lebanon, while IDF warplanes launch large-scale attack on Palestinian camp of Mieh Mieh, 13th and reportedly largest raid this year (4 are killed, 12 wounded). Warships bombard camp from Sidon coast. Israeli helicopters rescue one of the crewmen 90 minutes after plane was shot down; other crewmen are reportedly held by Shi'i militiamen (WP, NYT 10/17; WP 10/18).