I INSIDE WASHINGTON JAMES D. BESSER Washington Correspondent A s Washington sizzles in the summer heat, a number of issues im- portant to pro-Israel ac- tivists have moved off center stage — at least for now. But these issues continue to percolate quietly just below the surface; decisions made during this slow summer season will still have a major impact in the months to come. The question of $400 mill- ion in loan guarantees to help Israel construct new housing for Soviet refugees is still in a state of limbo. The measure was part of the giant supplemental spending measure approved recently by Congress. But the administration quietly decided to hold up implementation of the loan guarantee program in re- sponse to the creation of a new hard line government in Jerusalem, and concerns that some of the loans would be used to house Soviet set- tlers in the occupied ter- ritories. Ostensibly, the delay in providing the badly needed loan guarantees is the result of a "wait and see" approach by the administration as the new Israeli government takes the reins of power. But in fact, the $400 mill- ion remains a very impor- tant weapon in the ad- ministration's effort to nudge the Israelis towards the peace table and away from an active settlements policy. So far, Jewish activists are taking a very low profile on the issue. "There is a feeling that now is not the time to press," said an official with one major Jewish group here. "It's time to let the dust from the last few months settle, to let tempers cool off. But that doesn't mean that we don't still see this as a very important issue." On the question of the stalled peace process, there has been a discernible cool- ing off in rhetoric as Wash- ington moves into the summer doldrums. Administration officials have deliberately squelched speculation over the exchange of letters between President Bush and Prime Minister Shamir. Secretary of State James Baker's up- coming meeting with Israeli foreign minister David Levy, likewise, was designed to throttle back the escalating tensions between Jerusalem and Washington — and to mute arguments from pro- Israel groups that the ad- ministration did not give the new Shamir government the customary "honeymoon" before issuing angry pro- nouncements. There Is Good News For Rep. Barney Frank Things are looking up for Barney Frank, who is fighting for his political life in the wake of charges that he had a relationship with a male prostitute. Last week, Frank's chief competitor, Republican ical director at the conser- vative National Jewish Co- alition. Brooks promised that Nuzzo would not con- cede Frank any of his Jewish base. But Nuzzo's Jewish strategy did not exactly take off. The pro-Israel PACs seemed disinclined to dump Frank, who has been a staunch supporter of Israel during his five terms. And Frank has won a reputation for outspokenness on the domestic issues dear to the hearts of Jewish multi-issue groups. Frank is not out of the woods; he still is waiting for a ruling from the House ethics committee, which is apparently deadlocked over how to respond to the charges against the con- gressmen. Church-State Language Remains A Problem Barney Frank: One opponent less. James Nuzzo, pulled out of the race for "personal" reasons. In recent months, Nuzzo had made a special effort to win Jewish votes away from Frank, who is Jewish. Nuzzo reached into the ranks of Jewish activists for a cam- paign manager by appoin- ting Matthew Brooks, polit- Church-state questions continue to pop up in all kinds of strange places. This week, an amendment was expected to be tacked on to the National Service Act, a bill that would establish a wide-ranging program pro- moting national voluntary service. The amendment, written by Rep. Thomas Tauke (R- Iowa), would give par- ticipating organizations wide latitude in discrimina- ting against prospective employees on the basis of their religious beliefs. For Jewish activists, this is a high-stakes debate that goes well beyond the specific voluntary service programs. "We took a big hit on child care," said Michael Lieber- man, associate director of the Washington office of the Anti-Defamation League. "We want to make sure that the momentum of attaching dangerous church-state language to a variety of bills stops right there." The bill cleared the Senate earlier this year. But the House debate will be com- plicated by the Tauke amendment and the fact that Jewish organizations like ADL and the American Jewish Committee are taking a tougher position. "This is another example of totally inappropriate church-state language being attached to non-related bills," said Judy Golub of the American JewishCommittee. Quayle Looking Better To Jewish Groups With U.S.-Israeli relations in a sickening free fall, Jew- ish groups are casting about Dan Quayle: Jews' new 'darling'? for a friendly face in the Ex- ecutive branch. And more and more, Jew- ish activists are turning to the boyish visage of Vice President Dan Quayle. A year ago, Quayle was a marginal figure to activists interested in getting close to the seat of power, and an ob- ject of mirth to political pun- dits. Today, the vice presi- dent is still not exactly a powerhouse on the national scene — but he may be the best the pro-Israel commun- ity can muster. "Dan Quayle has done a credible job of reaching out to the Jewish community," said an analyst with a pro- Israel organization. "And he has been more consistently pro-Israel than anybody else in the administration." Several political observers point out that Quayle has been aided in his quest for a higher profile in the Jewish community by his chief of staff, William Kristol, son of Jewish neo-conservative Irv- ing Kristol. At this spring's policy con- ference of the American Israel Public Affairs Com- mittee (AIPAC), Quayle was so warmly received that he returned to the Sheraton Hotel to meet with the AIPAC board. Quayle has also become a popular speaker at Orthodox affairs. This spring, the vice president represented the administration at the "Freedom Seder" in Wash- ington. But Quayle's political pro- spects may complicate this new love affair with the Jew- ish community. There is widespread speculation that Quayle will be replaced on the 1992 GOP ticket by Sec- retary of State James Baker, whose political ambitions are said to be considerable. This possibility produces mixed feelings among Jew- ish politicos. On one hand, they point out, Baker's as- cent to the number two post would remove him from the all-important State Depart- ment position; since the ar- rival of the Bush ad- ministration, Baker has been a major headache for pro- Israel activists. On the other hand, a suc- cessful vice presidential bid would position Baker for a 1996 presidential contest — a prospect that produces cold sweats among pro-Israel ac- tivists. Death Penalty For Hate Crimes? Could perpetrators of hate crimes face the death penal- ty? Recently, the Senate defeated an amendment to the omnibus crime bill that would have opened up that possibility — a prospect that appalled some Jewish ac- tivists who were leaders in the fight for tougher penalties for those who commit crimes of racial, re- ligious or ethnic hatred. The amendment was in- troduced by Sen. Pete Wilson (R- Calif.), who is in the middle of a ferocious gubernatorial campaign in which the death penalty has become a major issue. Wilson's amendment Pete Wilson: Death penalty advocate. would have allowed the death penalty in the case of hate crimes that resulted in a death. ❑ THE DETROIT JEWISH NEWS 33 i~ jiJSA M Hottest Issue Moves To Back Burner