Moshe Dayan resigns from the Israeli government because of strong disagreements with Prime Minister Menachem Begin over policy towards the Arabs.

Menachem Begin (Hebrew: Menaem Begin (IPA: [menaem bein] (listen)); Polish: Menachem Begin (Polish documents, 19311937); Russian: Menakhem Volfovich Begin; 16 August 1913 9 March 1992) was an Israeli politician, founder of Likud and the sixth Prime Minister of Israel. Before the creation of the state of Israel, he was the leader of the Zionist militant group Irgun, the Revisionist breakaway from the larger Jewish paramilitary organization Haganah. He proclaimed a revolt, on 1 February 1944, against the British mandatory government, which was opposed by the Jewish Agency. As head of the Irgun, he targeted the British in Palestine. Later, the Irgun fought the Arabs during the 194748 Civil War in Mandatory Palestine and its chief Begin was also noted as "leader of the notorious terrorist organisation" by the British government and banned from entering the United Kingdom.Begin was elected to the first Knesset, as head of Herut, the party he founded, and was at first on the political fringe, embodying the opposition to the Mapai-led government and Israeli establishment. He remained in opposition in the eight consecutive elections (except for a national unity government around the Six-Day War), but became more acceptable to the political center. His 1977 electoral victory and premiership ended three decades of Labor Party political dominance.

Begin's most significant achievement as Prime Minister was the signing of a peace treaty with Egypt in 1979, for which he and Anwar Sadat shared the Nobel Prize for Peace. In the wake of the Camp David Accords, the Israel Defense Forces (IDF) withdrew from the Sinai Peninsula, which had been captured from Egypt in the Six-Day War. Later, Begin's government promoted the construction of Israeli settlements in the West Bank and the Gaza Strip. Begin authorized the bombing of the Osirak nuclear plant in Iraq and the invasion of Lebanon in 1982 to fight PLO strongholds there, igniting the 1982 Lebanon War. As Israeli military involvement in Lebanon deepened, and the Sabra and Shatila massacre, carried out by Christian Phalangist militia allies of the Israelis, shocked world public opinion, Begin grew increasingly isolated. As IDF forces remained mired in Lebanon and the economy suffered from hyperinflation, the public pressure on Begin mounted. Depressed by the death of his wife Aliza in November 1982, he gradually withdrew from public life, until his resignation in October 1983.

Moshe Dayan (Hebrew: משה דיין‎; 20 May 1915 – 16 October 1981) was an Israeli military leader and politician. As commander of the Jerusalem front in the 1948 Arab–Israeli War, Chief of Staff of the Israel Defense Forces (1953–1958) during the 1956 Suez Crisis, but mainly as Defense Minister during the Six-Day War in 1967, he became a worldwide fighting symbol of the new state of Israel. In the 1930s, Dayan joined the Haganah, the pre-state Jewish defense force of Mandatory Palestine. He served in the Special Night Squads under Orde Wingate during the Arab revolt in Palestine and later lost an eye in a raid on Vichy forces in Lebanon during World War II. Dayan was close to David Ben-Gurion and joined him in leaving the Mapai party and setting up the Rafi party in 1965 with Shimon Peres. Dayan became Defence Minister just before the 1967 Six-Day War. After the Yom Kippur War of 1973, during which Dayan served as Defense Minister, he was blamed for the lack of preparedness; after some time he resigned. In 1977, following the election of Menachem Begin as Prime Minister, Dayan was expelled from the Labor Party because he joined the Likud-led government as Foreign Minister, playing an important part in negotiating the peace treaty between Egypt and Israel.