MIDDLE EAST . . . ISRAEL, JORDAN ON THE VERGE OF PEACE

Jordan and Israel finished a draft peace treaty after an all-nighter to iron out quibbles over borders and water rights, the second surprise announcement of progress toward a formal end to hostilities in less than a week. The Israeli Cabinet approved the document today, hours after Prime Minister Yitzhak Rabin and Jordan's King Hussein signed it in Amman. Both countries' legislatures are expected to ratify the document by week's end, and a final version will likely be signed Oct. 26 on the Israel-Jordan border. President Clinton, who hosted the two leaders for a Washington handshake in July, will probably be on hand.