- July: A meeting between Saudi and Taliban representatives takes place in Kandahar, Afghanistan. In return for millions of Saudi money, bin Laden agrees not to attack targets in Saudi Arabia. The Saudis also agree not to extradite members of al-Qaeda, and to block demands from other countries that al-Qaeda training camps be shut down. At least 400 pickup trucks and $200 million flows into al-Qaeda coffers as a result of this deal. Note the discrepancy between the content of this meeting and the agreement between the Saudis and the Taliban to extradite bin Laden a month earlier. (CCR)
- July: When asked about the difficulties of being Texas's governor, George W. Bush replies, "You don't get everything you want. A dictatorship would be a lot easier." (Buzzflash)
- July 7: After Starr plays some of Linda Tripp's tapes of her conversations with Lewinsky, the state of Maryland opens an investigation into whether the use of these tapes is illegal. Maryland law states that both parties must give their consent for phone conversations to be taped. Lewinsky insists that she never knew she was being recorded. (Clinton Impeachment Timeline)
- Late July: Starr and Lewinsky reach agreement on providing her with immunity from prosecution. She testifies before his grand jury on August 6. (Clinton Impeachment Timeline, H.R. Clinton)