May 9, 1999

Over objections of his finance minister, PM Netanyahu persuades his cabinet to approve a 5 yr. program that would give $5,000 cash grants to Jews buying housing units in East Jerusalem; a 5 yr., $100 m. project for infrastructure improvements in East Jerusalem. (NYT 5/11)

Under pressure fr. the U.S., Israel's Public Security M Kahalani postpones closure of PLO offices in Orient House, meets with Orient House head Faisal Husseini to seek a compromise. (RMC, SA 5/9 in WNC 5/10; CSM, NYT, WP 5/10; IDF Radio 5/10 in WNC 5/11) (see 5/7)

IDF begins bulldozing 1,050 dunams of Palestinian land nr. the West Bank village of al-Shuyukh reportedly for development of a new industrial zone. (al-Quds 5/12 in WNC 5/17; LAW 5/15)