Arafat, FM Peres meet for 8 hrs. at Erez in unsuccessful last-minute attempt to reach an agmt. before 7/1 deadline passes. Peres rejects PA demand for control of security in villages, refugee camps nr. Jewish settlements, joint patrols on roads to settlements; says Israel must maintain "overriding responsibility" for all security. Arafat calls for redeployment over 2 mos fr. all major West Bank towns, incl. Hebron, to be completed 3 wks before elections. (WP, WT, NYT 7/2; IDF Radio, ITV, QY 7/2 in FBIS 7/3; CSM, MM, NYT, WT 7/3; al-Quds 7/3 in FBIS 7/5; MEI 7/7; JP 7/8)
In several towns throughout the West Bank, IDF clashes with Palestinians demonstrating in support of prisoners; 150 Palestinians are injured, 1 killed. Israel says it is willing to quickly release over 1,000 prisoners but is arguing with the PA over precise numbers, timing, conditions for release. (ITV 7/1 in FBIS 7/3; NYT, WP 7/2)
Hamas accuses the PA of shaving off the hair, beards of 3 leaders (Mahmud Zahhar, Ahmad Bahar, Salama Safadi) who have been detained since 6/25 explosion. (NYT 7/2, 7/10)