Israel annouces plans to build a dam just inside the boundary of land claimed by Syria. U.S. criticizes the decision; Syria says that it proves that Israel does not want peace; Jordan says that it is "totally against the spirit" of the 1994 Jordan-Israeli peace treaty. (MM 8/22; AFP, RMC 8/24, RMC 8/25 in WNC 8/26; MM, NYT 8/26; al-Dustur, JT 8/26 in WNC 8/27; al-Dustur, al-Ra'i 8/27 in WNC 8/28; NYT 8/28; MM 10/28)
Netanyahu phones Secy. of State Albright to warn the U.S. that the peace process is in serious trouble, blames Arafat exclusively, claims PA is not abiding by understandings reached in mtgs. with U.S. special envoy Denis Ross 8/10+n13. (ITV 8/23 in WNC 8/26; WT 8/25)
PA Executive Authority (EA), PLO Exec. Comm. discuss report published in Jane's Foreign Report that Israeli military sources were considering setting up an ultrasecret special unit that would carry out "punitive actions" against Palestinian politicians. The report concludes that the group being considered might be similar to the Lakam unit of the 1970s--a unit that reported only to the PM, was unknown to the Shin Bet, Mosad. (NYT 8/24; WT 8/25)
Netanyahu's inner cabinet discusses Russian military aid to Iran. The cabinet proposes freezing economic cooperation projects with Russia if it continues to help Iran. (NYT 8/25) (see 8/21)
Hizballah detonates roadside bomb in s. Lebanon, killing 1 SLA mbr. (Voice of the South 8/22 in WNC 8/25; MEI 8/29)