In a warning to PM Netanyahu, the Knesset passes (60-6, with 1 abstention, 53 coalition mbrs. boycotting) the 1st reading of a bill to dissolve parliament, which if enacted would effectively topple Netanyahu's government. (MM 7/29; CSM, NYT, WP, WT 7/30; MENA 7/30 in WNC 8/6; MM 7/31)
In Casablanca, the Jerusalem Comm. of the Organization of the Islamic Conference opens 2-day mtg. to address recent Israeli decisions on Jerusalem, esp. 6/21 approval to expand municipal boundaries. On the sidelines, Egyptian FM Musa briefs Syrian FM Shara` on his trip to Paris 6/27-28. (MENA 7/29 in WNC 7/30; MENA 7/29, RE 7/31 in WNC 8/6; al-Wafd 7/31 in WNC 8/10; al-Dustur, RJ 8/1 in WNC 8/7)
In a press interview, Israeli Labor MK Ori Orr makes very derogatory statements against Sephardic Jews, causing uproar, highlighting ethnic tensions among Jews in Israel. (MM 7/30, 7/31)
Speaking before a congressional comm., Asst Secy. of State Indyk says that U.S. will continue efforts to contain Iraq, defines new policy toward Iran as being closer to the EU policy of "open dialogue," effectively ending the U.S. policy of dual containment. (GIU 7/31)
As part of the U.S.'s increasing attempts to destabilize the Iraqi regime, the U.S.-sponsored Radio Free Europe/Liberty announces that it will soon begin broadcasting to Iraq, Iran fr. a secret location in Czechoslovakia. (WP 7/30) (see 7/21)