MIDDLE EAST: Flags, Flare-Ups, Fiscal Troubles

While an ailing Begin lies in a bed of troubles

To the sound of national anthems and smartly clicking heels, an Egyptian soldier solemnly kissed his country's red-white-and-black tricolor and hoisted it in the place of the blue-on-white Israeli star of David. With that exchange of flags last week, under a blazing sun in the desert outpost of Bir Nasib, another slab of the Sinai Peninsula duly changed hands in accordance with the Egyptian-Israeli peace treaty.

It was the second of the six phased withdrawals prescribed by the pact. Israel ceded to Egypt a 2,500-sq.-mi. stretch of desert coastline and rugged inland...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!