Israeli planes hitting targets in Beirut - Playing the game of tit-for-tat.

July 27, 1981 – Israeli-PLO Ceasefire In Lebanon – The G-7 In Ottawa – Selling The Reagan Tax Plan.

Israeli planes hitting targets in Beirut – Playing the game of tit-for-tat.
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July 27, 1981 – ABC Radio World News This Week – Gordon Skene Sound Collection –

July 27, 1981 – What a week. Israeli and Palestinian forces agreed separately on the 24th to a cease-fire across the Israeli-Lebanese frontier.

The Israeli and Palestine Liberation Organization announcements came three and a half hours apart. Israel said the agreement had been negotiated by the United States. The P.L.O. said it had been reached through the auspices of the United Nations.

Israel’s Cabinet agreed to halt attacks on Palestinian positions in Lebanon as of this afternoon, reportedly on the condition that Palestinian guerrillas refrain from any further military buildup in the southern part of Lebanon.

The arrangement to stop the fighting was first announced in Jerusalem by the special American envoy, Philip C. Habib, after meetings here and in Beirut. It was confirmed by Prime Minister Menachem Begin.

The cease-fire arrangement took an intricate form because of the refusal of Israel and the United States to talk to the P.L.O. and the refusal of Lebanon to talk to Israel. The understandings were between Israel and the United States and between the United States and Lebanon, which dealt with the P.L.O. through the United Nations. Mr. Habib negotiated with Israeli, Saudi Arabian and Lebanese leaders, but not with the Palestinians.

Meanwhile, the situation in the Middle-East was only one of several subjects discussed during the G-7 Economic summit taking place in Ottawa. On July 19, 1981, Prime Minister Pierre Trudeau played host to his fellow Group of Seven leaders who were in Canada for the 7th economic summit – the first in this country. German Chancellor Helmut Schmidt was the first to arrive via helicopter, followed by Britain’s Margaret Thatcher, American President Ronald Reagan, French leader Fran├žois Mitterrand, Italian President Giovanni Spadolini and Japanese Prime Minister Suzuki Zenko. Over the next two days, all eyes would be on Chateau Montebello as the seven most powerful world leaders held talks on topics effecting, in addition to the goings-on in the Middle-East, unemployment, interest rates and aid for less developed nations.

And The Reagan Tax plan, or Kemp-Roth Tax Cut, was an Act that introduced a major tax cut, which was designed to encourage economic growth. The federal law enacted by the 97th US Congress and signed into law by US President Ronald Reagan.

Representative Jack Kemp and Senator William Roth, both Republicans, had nearly won passage of a tax cut during the Carter presidency, but Jimmy Carter feared an increase in the deficit and so prevented the bill’s passage. Reagan made a major tax cut his top priority once he had taken office. The Democrats maintained a majority in the US House of Representatives during the 97th Congress, but Reagan was able to convince conservative Democrats like Phil Gramm to support the bill. The Act passed the US Congress on August 4, 1981, and was signed into law by Reagan on August 13, 1981. Along with spending cuts, Reagan’s tax cuts were the centerpiece of what some contemporaries described as the conservative “Reagan Revolution.”

And that’s a small slice of what went on, this week ending July 27th in 1981 as presented by ABC Radio’s World News This Week.

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