Israel reports evidence it says links Arafat; his close associates Adil Mughrabi, Fuad Shubaki, and Fathi Razim; Hizballah; Iran; and others to the Karine A. Hizballah denies any involvement. (NYT, WP, WT 1/6; MM 1/7)
Meanwhile, the PSF arrests senior Islamic Jihad mbr. Fawaz Khulayif on charges of being involved in shooting attacks on Israelis, wounds 2 Islamic Jihad mbrs. during his capture; also arrests National Islamic Salvation party (NISP) Secy. Gen. Jamal Talab Salih. The IDF critically wounds a Palestinian in a shooting incident, halts the ambulance transporting him to the hospital, takes him to an undisclosed location for several hrs. of questioning before releasing him to the hospital in critical condition. The IDF also sets up new checkpoints around Nablus. (WT 1/6; Radio Monte Carlo 1/6 in WNC 1/7; LAW 1/9; al-Quds 1/17 in WNC 1/22)