PC special investigative comm. into PA corruption reads its report to the council; says up to $340 m. (half of the PA budget) has been misspent (including foreign aid donations), half of the EA mbrs. are implicated in misappropriation of funds, others are unqualified; calls on Arafat to dissolve the cabinet, put 3 EA mbrs. (Planning M Shaath, Civil Affairs M Jamil Tarifi, Transportation M Ali al-Qawasmi) on trial. The PC report's conclusions are nonbinding. (CSM, WP, WT 7/30)
Egyptian Pres. Mubarak makes previously unannounced visit to Damascus to discuss the peace process with Pres. Asad, who expresses "no hope" under current conditions. Mubarak then heads to Amman to meet with King Hussein. (RJ, SANA 7/29 in WNC 7/30; RJ 7/29 in WNC 7/31; MM, WT 7/30; MEI 8/8)
In Amman, King Hussein, FM Tarawnah meet with Israeli FM Levy, say that they are optimistic that Netanyahu's decision to block Ras al-Amud development will jump-start the peace process. (RJ 7/29 in WNC 7/30, 7/31; WT 7/30)
EU special envoy Moratinos arrives in Damascus for 2 days of talks with FM Shara` on reviving the Syrian-Israeli talks. (RJ 7/31 in WNC 8/1)
Israeli commandos enter Tulkarm (area A) to capture an Islamic Jihad mbr. Ghassan Mahdawi, who had escaped fr. an Israeli prison in 8/96. (al-Quds 7/29 in WNC 7/31; MM 7/31; CSM, NYT 8/1; JP 8/2)
Nr. Elon Moreh settlement in the West Bank, a Palestinian stabs an IDF soldier in the shoulder, is shot and killed by a 2d soldier. (ITV 7/29 in WNC 7/30, 8/1; JP 8/9)
A poll of young bedouin in the Negev conducted by Bersheeba University shows that 48% believe that Israel does not have a right to exist, 70% prefer to go to jail than serve in the IDF, 70% believe the term "Palestinian" describes them, 45% prefer to live in Israel than in an Arab state or the West. (YA 7/29 in WNC 7/31)
Japan requests extradition of 5 Red Army mbrs. currently standing trial in Lebanon. (RL 7/29 in WNC 7/30) (see 6/9)