Tuesday, December 28, 1982

Political Responses:

Israel/ Occupied Territories: Ethnic conflict between Ashkenazi and Sephardic Jews explodes after fatal shooting by policeman in slum area of Tel Aviv, Sephardic Jews spray-paint swastikas and slogans against Ashkenazim on cars and walls, including Jerusalem home of Interior Minister Burg; direct cost of Lebanon invasion put at $1.1 billion, based on assumption that IDF will stay in Lebanon through end of February 1983.

Palestinians/ Lebanese: First Israeli-Lebanese negotiations since 1949 begin at Khalde, 40-minute opening ceremony followed by 4 hours of secret talks, deadlock reporter over Israeli insistence on talking about political and security arrangements before details of withdrawal.

US and Other Countries: Kreisky of Austria indicates he is mediating exchange of prisoners between PLO and Israel at request of families of POWs.

UN: Britain informs UN it will contribute 80 ment to peacekeeping force.