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MIDDLE EAST DEVELOPMENTS Palestinian residents of the occupied territories were banned from Jerusalem yesterday, as Israeli authorities sought to forestall trouble in the wake of their controversial decision to deport four Palestinian leaders. Scores of Israeli police also prevented a small group of Jewish religious extremists from approaching the sacred Muslim shrine on Temple Mount.... Iraq is refusing to let 2,300 Soviet experts leave the country until a dispute with Moscow over contracts is resolved. A Soviet delegation began talks Monday to try to negotiate the departure of the advisers, most of whom work in the oil industry.... US Secretary of State James Baker III won backing from NATO allies yesterday in the dispute with Iraq over when to hold talks aimed at heading off war in the Persian Gulf. President Bush and Iraqi Foreign Minister Tariq Aziz were supposed to meet at the White House yesterday. But at press time, Iraq was still disputing the schedule of the talks.


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While avoiding the word recession, US Treasury Secretary Nicholas Brady acknowledged that the nation's economy is in a ``significant slowdown.'' Brady called on the Federal Reserve Board to lower interest rates to spur economic activity.... The Hong Kong and Shanghai Bank, the largest financial institution in the British colony, announced yesterday it plans to reorganize its operation into a British-based holding company. The bank said the reorganization was in response to its increased international operations.... US airline industry giants fought for a place at the top of the heap Sunday as Trans World Airways offered to buy Pan Am after selling many of its key routes to American Airlines.


The Soviet Union's legislature opened a crucial meeting yesterday, which President Mikhail Gorbachev hopes will grant him tough new powers to prevent political and economic collapse. But at least five restive republics issued an immediate challenge to Gorbachev's plans by announcing they would boycott all or most of the 10-day session.... Albania's Communist government Sunday held its first talks with the new opposition Democratic Party after troops and tanks were deployed to quell riots across the Balkan state.... Speaking at his inauguration, Ireland's new Roman Catholic archbishop, Cahal Daly, begged IRA gunmen and bombers to stop the killing in Northern Ireland and lay down their weapons.


In Seoul, South Korean President Roh Tae Woo returned Monday from a historic visit to the Soviet Union, saying the two countries agreed to work together for peaceful reunification of South and North Korea.... In Manilla, Foreign Secretary Raul Manglapus said Monday the Philippines planned to include a nuclear-weapons ban in a future treaty on US military bases.

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