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Israeli Foreign Minister Yitzhak Shamir Wednesday denied a fellow Cabinet member told him Phalangist militia were ''butchering'' Palestinians about 18 hours after the September massacre in Beirut refugee camps had started. Mr. Shamir told the judicial inquiry into the massacre that he received a telephone call from Communications Minister Mordechai Zipori about the situation but denied that the words ''massacre'' or ''butchery'' were used.

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