Pres. Bush meets with PM Rabin in Kennebunkport, ME, agrees "in principle" to support $10 billion loan guarantee request, "satisfied" with Rabin's progress on settlement curtailment. (NYT, WP 8/11)
Israeli cabinet condemns 8/9 settlement attempts in West Bank and East Jerusalem, resolves to investigate, "plug loopholes" that allow public funds to be used through private groups for "provocative" Jewish settlement in East Jerusalem. Cabinet also grants diplomatic status to EC rep. in charge of o.t. aid programs. (Qol Yisra'el, IDF Radio 8/10 in FBIS 8/11; MM 8/11)
U.S. announces that all parties have agreed to attend new round of peace talks in Washington 8/24. (NYT, WP 8/1 1)
Alleged mbr. of FRC (Abu-Nidal) Salam Muhammad Mukahal is killed by unidentified attackers in Biqa' Valley. FRC denies any connection with Mukahal. (AFP 8/10 in FBIS 8/11; Voice of the People 8/11 in FBIS 8/12)