INSIDE WASHINGTON I
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Washington Jolted
By Shoval Comments
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JAMES D. BESSER
Washington Correspondent
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ast week's blunt warn-
ing by Israeli ambas-
sador Zalman Shoval
that additional U.S. aid
could be jeopardized by the
continuing expansion of
Jewish settlements came as
a jolt to pro-Israel activists
in Washington.
Mr. Shoval, according to
sources here, was frustrated
by the unwillingness of his
bosses in Jerusalem to
understand the heavy polit-
ical fallout of the set-
tlements issue in this coun-
try.
Many pro-Israel activists
here privately share that
sentiment as they turn up
the heat on efforts to pass
$10 billion in loan guar-
antees to help Israel absorb
thousands of Soviet and E-
thiopian Jews.
But some worry that Mr.
Shoval's comments, by
highlighting a possible
linkage between the set-
tlements question and the
loan guarantees, may have
undercut their efforts to sell
the loan guarantees to Con-
gress.
"Shoval's perception of
this problem is an accurate
one, in the estimation of
many of us," said a leading
pro-Israel activist here. "But
going public was hurtful. It
makes it more difficult for us
to separate the issues in the
minds of Congress and the
administration — and it may
make it harder for those in
Israel who would like to
lower the profile of the set-
tlements issue to do so."
But other sources in the
pro-Israel community in-
dicated that Mr. Shoval's
comments could have a
positive impact.
"If the administration has
already made the connection
Zalman Shoval
between settlements and the
loan guarantees, his speak-
ing out may give him added
credibility on Capitol Hill to
fight this linkage," said
Rabbi David Saperstein, di-
rector of the Religious Ac-
tion Center of Reform
Judaism. "So while there
are costs and benefits to
what he said, the benefits
may outweigh the costs."
There is little doubt here
that Mr. Shoval's basic
assessment of the political
climate here is an accurate
one.
In recent weeks, the ad-
ministration has sent out
deliberate signals linking
the loan guarantees to
Israel's settlements policies.
Several staunchly pro-Israel
congressmen are privately
warning that they may be
fighting a losing battle
unless Israel makes some
concessions on settlements.
In another indication of
the overwhelming impor-
tance of the loan guarantee
debate, Israeli Defense Min-
ister Moshe Arens was due
in town this week for a
round of meetings with ad-
ministration officials on
defense matters — and an
unusually heavy Capitol
Hill schedule, where he is
expected to take soundings
on the loan guarantee issue.
House Cuts Funds
For New Immigrants
Congress works in
mysterious ways when it
comes to the politically sen-
sitive subject of spending
money.
That fact was evident re-
cently when the House was
putting the final touches on
a measure including an in-
crease in funds for refugee
resettlement in the United
States — including the
resettlement of Soviet Jews.
But somewhere along the
line, legislation that had
delighted Jewish activists
took a wrong turn.
During the bill's markup,
Rep. William H. Natcher,
D-Ky., chairman of the
House appropriations sub-
committee on Labor, Health
and Human Services and
Education, was able to "zero
out" funding for a program
that reimburses states for