INSIDE WASHINGTON 1.1 ■ 1111=11111MINIMmomml JAMES D. BESSER Washington Correspondent Cranston Moves Against Arms Sale To Saudis Israel Agonies May Stall Housing Loan Promises T he recent agreement releasing $400 million in loan guarantees to help house Soviet Jews in Israel was a matter of some satisfaction for pro-Israel ac- tivists who worked long and hard to convince the ad- ministration to free up the money voted earlier by Con- gress. Less satisfying were the different interpretations of the agreement in Washing- ton and Jerusalem — and hints that internal Israeli politics may again jeopar- dize the badly needed loan money. Last week, the text of the agreement was released by the State Department in reaction to Prime Minister Yitzhak Shamir's an- nouncement of new Jewish neighborhoods in East Jerusalem. Mr. Shamir was reportedly incensed by the provision that stated that the loan money would only be used in areas "which were subject to the Government of Israel's administration prior to June 5, 1967." That would effectively ex- clude East Jerusalem, a fact that was hard for most Likud politicians to swallow. Only hours after Mr. Levy's return, Mr. Shamir an- nounced the new building plans for the city, a move that is almost certain to raise the ante in the ongoing contest over the loan guar- antees. Despite concerns about the Jerusalem issue, Israel also won some points in the corn- (AIPAC), attempted to discourage Mr. Cranston from introducing his resolu- tion. The pro-Israel com- munity, according to sources here, had tacitly agreed to let this Saudi arms deal through — in return for more than $700 million in "offsets" for Israel, military equipment that would be taken from current Ameri- can stockpiles. There were concerns that Mr. Cranston's measure would jeopardize the pro- gress of an amendment to the Foreign Operations ap- propriations bill providing the badly needed offsets. But once the measure was in the hopper, some pro- Israel activists decided to take advantage of Mr. Cranston's move. "They're trying to make the best of a dumb situa- tion," said an aide to a top Jewish legislator. "Nobody gives this resolution any chance of success; none of Sen. Alan Cranston: Was his resolution a dumb move? the pro-Israel groups pushed it. But it's something they can't very well oppose. And maybe they can use it as a lever on other issues." German Treaty Slides Silently Through Senate David Levy plex negotiations. American negotiators ap- parently backpeddled on the issue of "fundibility," the question of whether the U.S. loans would free up addi- tional Israeli funds for use in settling Soviet Jews in the occupied territories. And efforts to build into the agreement tough provi- sions that would have re- quired Israel to report to Washington on its housing plans apparently ran afoul of Mr. Levy's well-known stub- bornness. In fact, Mr. Levy only promised to "use my best efforts to provide annually as complete information as possible on the Government of Israel's financial support for settlement activity." "This WAS a good agree- ment, from Israel's point of view," said an official with a major Jewish organization here. "But it was probably a mistake for Mr. Levy to go back and trumpet his vic- tory." The treaty ending the post- war division of Germany glided past the Senate last week with hardly a murmur of interest. Several weeks ago, when the Senate leadership defied the administration by in- sisting that the treaty re- quired Senate ratification, there was talk that Jewish groups might seek to testify in hearings on the pact. But with attention focused almost exclusively on the Persian Gulf and on the titanic Battle of the Budget, the debate over the German treaty became a kind of legislative footnote. Jewish groups were still trying to decide on a strategy for the ratification process when the full Senate acted, ratifying the treaty — which relinquishes Ameri- can, Soviet, French and British control over Ger- many — by a 98 to 0 vote. Only one legislator — Sen. Rudy Boschwitz (R-Minn.) — took the occasion to bring up Germany's ugly past. "Germany is Germany, from the standpoint of its history," Mr. Boschwitz said. "I think we need to have some recognition of that fact. I have a mixed emotion about seeing it get back together again. Hopefully the feelings and mentality of the people have changed." At least one Jewish group was not happy with the swift, silent passage of the ratification measure. "My reaction is the same as it's always been," said Rabbi Marvin Hier, dean of the Simon Wiesenthal Center. "The most remarkable thing about the document that the Senate ratified was that it address- ed the concerns of the four major powers — but it never mentioned the word `Holocaust.' It's an insult to the memory of the victims martyred in the Holocaust to think that in the final agreement that brought the two Germanys together, they didn't rate even one line." Ohio Congressman Runs Afoul Of Arab-Americans The Persian Gulf crisis has touched just about every corner of American political life. The effects of the crisis have even reached Cleveland, where Rep. Ed Feighan, a Democrat, has run afoul of a local Arab- American organization. In the past, Mr. Feighan, a four-term legislator, had received the endorsement of the Cleveland American Middle East Organization (CAMEO), an Arab- American group, despite the fact that the legislator has been one of Israel's staun- chest defenders in Congress. Not this time around. This time, CAMEO endorsed Mr. Feighan's Republican oppo- nent, Susan M. Lawko, who is given almost no chance of unseating the popular in- cumbent. According to some observers, CAMEO's chang- ed loyalties are related to the fact that Mr. Feighan filed a complaint with the Federal Elections Commis- sion. ❑ THE DETROIT JEWISH NEWS 37 IL ATI ON A Prime Minister Yitzhak Shamir. The administration's slick bait-and-switch on the cur- rent Saudi arms sale pro- posal may not have been a deciding factor, but all the evidence suggests that the sale, which will include some $7 billion in high-tech weaponry for the Riyadh government, will sail through Congress. Several weeks ago, the administration stunned pro- Israel activists with leaks indicating a sale of more than $20 billion. That figure was immediately scaled back to about $7 billion in what many observers saw as a clever move to redefine the range of acceptable sales. But late last week, Sen. Alan Cranston (D-Calif.) in- troduced a "resolution of disapproval," the first step in any congressional effort to reject the administration proposal. Pro-Israel groups, in- cluding the American-Israel Public Affairs Committee