As part of U.S.-brokered deal, Israel offers to allow 100 Palestinian deportees to return, to reduce the exile period to 1 year and allow relief to the remaining 296. U.S. Secy. of State Christopher says "further action by the UNSC is unnecessary"; Israel's offer came with a U.S. pledge to block any sanctions. (MM, NYT, WP 2/2)
PLO, Palestinian spokeswoman Hanan Ashrawi reject Israel's "100" offer. (Algiers VOP 2/1 in FBIS 2/2; WP 2/2)
Chmn. Arafat meets with King Hussein in Amman, then leaves for Baghdad. (Radio Jordan 2/1, Jordan Times 2/2 in FBIS 2/2)
Israel announces it has arrested a 3rd Palestinian-American connected to Hamas (see 1/31). (Qol Yisra'el 2/1 in FBIS 2/1)
EC FMs meeting in Brussels welcome Israel's "100" offer, but have yet to determine whether it is sufficient to resume negotiations on extending economic cooperation with Israel. FM Peres is attending. (NYT 2/2)
U.S. announces it will include the actions of Hamas in its annual global terrorism report, officially labelling the org. as "terrorist." (WT 2/3)