Military Action:
Bomb explodes near military outpost close to Ain el-Hilweh; PRG grenade fired at Israeli civilian vehicle near Aley.
Casualties:
2 IDF soldiers killed, 1 wounded, 2 Lebanese wounded near Ain el-Hilweh.
Political Responses:
Israel/ Occupied Territories: Begin's office announces talks will begin next week on troop withdrawals, but questions grow over whether Lebanese government backs "negotiating" draft; Israeli tourism way down during traditionally busy Christmas season; goodwill delegation of Israeli religious dignitaries leave for Lebanon hoping to arrange reconciliation between Druze and Christians in Chouf; curfew reimposed on Balata refugee camp near Nablus, second high school ordered closed after students allegedly participate in rock-throwing.
Palestinians/ Lebanese: Ousted Mayor Milhem of Halhoul, in Amman, says PLO must approve any negotiators who speak for the Palestinians.
Arab Governments: King Hussein leaves US for home; Arab League and PLO foreign minister to meet January 21 to assess efforts to promote Mideast peace plan.
US and Other Countries: Reagan optimistic but cautious after second meeting with King Hussein; White house officials later say in next 2-3 weeks Hussein will publicly announce whether or not he will join peace talks; Israeli consulate, Jewish club bombed in Sydney, Australia.