Explosion 400 yards from Lebanon Beach Hotel in.Khalde delays talks for 30 min., Israel charges was 107mm Katyusha rocket fired from behind Marine lines in Hay el-Sellom, Phalange says was rocket-propelled grenade, Lebanon state radio says was 120mm mortar, Lebanese Army says shell was detonated by explosives on the spot; IDF tries to use road under MNF jurisdiction.
1 IDF at checkpoint near hotel wounded; IDF detains 4 Lebanese in Khalde area, cuts off road.
Israel/ Occupied Territories: Government defeats 2 no-confidence motions on social policies put forward by Labor and Democratic Front following release of survey that shows 300,000 Israelis live under poverty line; General Amir Drori criticizes US Marines for failing to prevent guerrilla infiltration from its sector; General Yaacov Even, IDF chief spokesman, says Marines are buffer for PLO's hit and run attacks, that since Dec. 22, 9 incidents near US lines resulted in 1 IDF killed, 25 wounded; Government denies reports that relations with Ethiopia have improved and Israeli advisers are now in Addis Ababa; week long Canal Founders Conference of Israel Bonds begins, attended by 200 Jewish leaders from US and Canada; security forces arrest 2 from Gaza who admit to Jan. 8 Tel Aviv grenade attack, say they are members of Fateh and were trained in Egypt.
Palestinians/ Lebanese: After 6 hours, negotiations stalled on Israel's demand to have IDF remain in security installations in Lebanon and nature of future relations, with Lebanon proposing protocol accord to regulate ties.
Arab Governments: King Hussein returns to Jordan from tour of Kuwait, Bahrain, Qatar and Oman.
US and Other Countries: State Department denies press reports that Reagan is prepared to sign document drafted by National Security Council, State and Defense Departments to cut off military aid to Israel; Reagan Administration says it is extremely concerned over slow pace of Lebanon negotiations, following Habib's return to US, with 2 stumbling blocks of normalization and surveillance stations; National Executive Committee of the Zionist Organization of America is told by Senator Carl Levin (D-MI) that Reagan Administration is not a mediator in the Middle East but coddles Saudi Arabia and entices King Hussein to peace table with airplanes and missiles, that it was never disclosed publicly that intelligence officials told the State Department that armed PLO members remained in Beirut; ZOA President Ivan Novick says Reagan Administration uses West Bank settlements to divide American Jews, but Jewish settlements are valid based on right to security and self-defense, historical connection, and according to international law Israel holds better title to this land; British press reports that secret documents accidently released recently indicate that Britain dissuaded Jordan, Syria and Iraq from concluding peace agreements with Israel in 1949.