Yemen - Government
	Following the US-led military offensive against Iraq, Yemen issued a statement in which it condemned the action, and hundreds of thousands of Yemenis demonstrated in support of Iraq. Later in January it was confirmed that US aid to Yemen was to be suspended indefinitely, apparently as a result of Yemen´s policy towards Iraq. Reduced US economic aid was resumed in August 1991. Relations with Saudi Arabia deteriorated as a result of Yemen´s initial strong opposition to the presence of foreign armed forces in the Gulf and to the ambiguous stance it had subsequently adopted in this respect. In mid-September 1990, in what was regarded as a retaliatory action, Saudi Arabia announced that it had withdrawn the privileges which Yemeni workers had previously enjoyed. This resulted in an exodus from Saudi Arabia of an estimated 850,000 Yemeni workers during October and November, which caused widespread economic and social disruption. The expulsion and consequent return to Yemen of the workers not only caused a reduction in the Yemen´s income from remittances, but also led to a serious increase in unemployment. The Governments of Yemen and Saudi Arabia held negotiations on the subject of the demarcation of their common border in July1992 in Switzerland, and in May 1993 in Riyadh, Saudi Arabia. Negotiations continued into 1994; however, in December Yemen accused Saudi Arabia of trespassing on territory of Yemen and alleged that three Yemeni soldiers had been killed during clashes earlier in that month. Further clashes were reported in January 1995 following the failure of the two countries to renew the 1934 Ta´if agreement (renewable every 20 years), which delineated their existing frontier. Intense mediation by Syria culminated in a joint statement in mid-January, in which Yemen and Saudi Arabia pledged to cease all military activity in the border area. It was subsequently announced that the demarcation of the disputed border would be undertaken by a joint committee. In late February the Yemen and Saudi Arabia signed a memorandum of understanding that reaffirmed their commitment to the Ta´if agreement and provided for the establishment of six joint committees to delineate the land and sea borders and develop economic and commercial ties. In 1983 Saleh resigned from the presidency but was unanimously reelected by the National Assembly, which he had created the year before. Saleh worked to implement democratic reforms and in 1988 replaced the National Assembly with the Consultative Council. In 1990 the YAR and the PDRY united into a single state, under the presidency of Saleh. Saleh focused on improving economic and social conditions, in large part through the developmentof Yemen´s oil resources. In June President Saleh and a high-ranking delegation visited Saudi Arabia, constituting the first official visit to that country since February 1990. Yemen and Saudi Arabia expressed their satisfaction with the memorandum of understanding and, in addition, pledged their commitment to strengthening economic, commercial and cultural co-operation. Meetings of the joint committees continued during 1995-96. Reports of an attempted incursion into Yemen by Saudi forces in December 1995 were denied by both sides. In July 1996 Yemen and Saudi Arabia signed, a bilateral security agreement which included provisions intended to counter the cross-border trafficking of illicit drugs. Friction over border claims; however, was revived in 1997, and in May 1998 it was reported that Saudi Arabia had occupied an uninhabited island in the Red Sea regarded by Yemen as within its national boundaries.