DEBATE over extra defence expenditure eclipsed Israeli cabinet discussions of the stalled negotiations with the Palestinians, crushing any hopes of an immediate breakthrough in the deadlocked peace process.
Prime Minister Binyamin Netanyahu was to have met yesterday with senior ministers charged with hammering out new proposals for further transfers of West Bank land to Palestinian rule, the issue that has been holding up progress in the peace process for the past 17 months. But the meeting was rescheduled for today as the acrimonious debate over the government's draft 1999 budget ran into an unscheduled third day, and Finance Minister Yaacov Neeman warned his colleagues that any increase in his proposed budget would lead to higher taxes, interest rates and inflation.
With Netanyahu expected to begin a week-long holiday on Sunday, hopes for any progress before the end of August have been effectively eroded.
Suspect death
PALESTINIAN General Intelligence Service Director Amin Al-Hindi said yesterday the military attorney general was investigating the death in detention of Walid Mahmoud Qawasmeh, Reuters reported. Hindi confirmed that Palestinian President Yasser Arafat has vowed to punish any officers found to have been involved in the death of Qawasmeh, 45, who had been detained without charges for 10 days in a general intelligence service jail in the West Bank town of Jericho.
He died during a 50km journey to a hospital in Nablus on Tuesday. His death was initially blamed on heat stroke, but his brother Ibrahim said on Monday that an autopsy showed skull fractures had resulted internal bleeding.
His death provoked an unprecedented outcry and highlighted the abuse of power and the disdain in which many Palestinians hold the security services.
Iraq standoff
UN SECRETARY General Kofi Annan's special envoy is due in Iraq today carrying a firm message from the Security Council urging Iraqi officials to resume cooperation with the weapons inspectors of the UN Special Commission (UNSCOM) before the Council reviews its relationship with Baghdad.
But Iraqi newspapers said yesterday proposals for partial solutions would be rejected and the Iraqi leadership would not negotiate any agreement before article 22 of UN Resolution 687, lifting the embargo on Iraqi oil exports, was immediately implemented and all disarmament files closed, AP reported.
Iraq suspended cooperation with UNSCOM last week as Deputy Prime Minister Tarek Aziz expressed frustration about the "endless games" played by UN inspectors.
Viagra haul
A US PHARMACIST of Egyptian origin was arrested at Cairo airport on Tuesday trying to smuggle in LE1 million ($300,000) worth of the drug Viagra.
Airport officials, who did not identify the man, said he arrived from Istanbul with 721 boxes of Viagra and 391 boxes of various other drugs concealed in his luggage. He claimed he was not aware Viagra was banned in Egypt.
A report was being prepared for the Health Ministry to determine what should be done with the suspect.
Egypt imposed a ban on Viagra in May, saying it wanted to conduct its own tests on the drug despite its approval for use in the US.
Handball win
EGYPT has clinched the 11th World Military Handball championship, defeating Belarus 25-23. It is the second time Egypt has won the competition, following its 1993 victory when Egypt hosted the championship.
Thirteen nations took part in the tournament held in Romania. Egypt, which did not lose a game en route to the title, topped its group with victories over Holland 36-20 and Poland 25-21. In subsequent matches, Egypt downed Germany 30-22 and Latvia 29-22. In the semi-finals, it upended the host nation 23-20.
