Arafat presents new cabinet to the PC. (MM 8/5; MM, NYT 8/6; LAW, MM, PR 8/7)
By phone, Secy. Albright tells PM Netanyahu that the freeze in the peace process is harming U.S. interests in the Middle East, is affecting the U.S.'s ability to forge a coalition against Iraq (see 8/4). Netanyahu asks Albright to send special envoy Ross back to the region, but she refuses. (MA 8/6 in WNC 8/7)
In Damascus, Iran, Syria hold talks on financial cooperation, joint investments, elimination of double taxation. (IRNA 8/5 in WNC 8/7) (see 8/2)
2 Jewish settlers on patrol around Yitzhar settlement nr. Nablus are shot, killed. IDF places curfew on nearby Palestinian villages, search for attackers but do not find them. PM Netanyahu authorizes expansion of Yitzhar; settlers say that they will start work immediately. (MM, NYT 8/5; CSM, MM, WP, WT 8/6; MM 8/7; YA 8/7 in WNC 8/11; JP 8/15)
In s. Lebanon, 1 Hizballah mbr. is killed, 1 is wounded by IDF shelling. (RL 8/5 in WNC 8/6; VOL 8/5, RL 8/6 in WNC 8/7)