YEAR IN REVIEW 5749 YEAR IN REVIEW NATIONAL FRED MALEK, a Bush advisor, was forced to step down during the presidential campaign when old charges of his cooperation with Richard Nixon in ridding the Labor Department of a "Jewish cabal" resurfaced. But Malek may be .getting a post in the Bush Administration. JOHN SUNUNU raised anxiety levels among American Jews when he - was appointed George Bush's White House Chief of Staff. But the former New Hampshire governor, of Lebanese extraction and a member of several Arab American associations, has sought to steer clear of Mideast bias. SECRETARY OF STATE BAKER infuriated many Israelis and American Jews after his carefully balanced Mideast policy speech presented at the annual conference of the American Israel Public Affairs Committee in Washington. Critics challenged Baker's call for Jerusalem to abandon dreams of a Greater Israel and said his equation made Israel appear to be equally at fault as the Arabs for lack of peace progress. THE BUSH-DUKAKIS CAMPAIGN was marked by negative advertising and charges of anti-Semitism within both camps. Despite Bush's decisive victory, about two-thirds of Jewish votes were cast for Dukakis. tamed its uneasy alliance with Likud. At year's end, Egyptian Presi- dent Mubarak offered a 10-point elaboration of Israel's peace plan designed to close the gap be- tween Israel and the Palestin- 56 FRIDAY, SEPTEMBER 29, 1989 ians. But its emphasis on Israel trading land for peace has underscored the division within Israel over that principle. Wary Of Washington American-Israeli relations were strained most over Jerusalem's abduction of Hez- bollah leader Sheik Abdul Karim Obeid from Lebanon in an attempt to gain freedom for three Israeli prisoners of war. Hezbollah allegedly retaliated by announcing the execution of an American hostage, Lt. Col. William Higgins, though indica- tions were that the colonel had been murdered before the Israeli abduction. But the Hezbollah's effort to drive a wedge between Jeru- salem and Washington seemed successful when President Bush did not defend Israel's action and Republican leader Sen. Robert Dole criticized Israel for allegedly endangering the lives