INSIDE WASHINGTON t'Imm
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Surprise! Jewish Groups
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T
urf battles
are an ugly
fact of life in the world
of Jewish activism.
But as pro-Israel groups
around the nation gear up
for an unprecedented effort
on behalf of Israel's impen-
ding request for $10 billion
in loan guarantees, coopera-
tion and coordination seem
to be winning out over com-
petition and bickering.
The Conference of Presi-
dents of Major Anierican
Jewish Organizations is co-
ordinating the overall effort,
which encompasses most na-
tional and local Jewish
groups.
The American-Israel
Public Affairs Committee
(AIPAC) is busy designing a
legislative strategy that will
hopefully result in a loan
guarantee bill that would be
insulated from administra-
tion attempts to use the
guarantees as a lever
against the Jerusalem
government.
In the past, AIPAC and the
Presidents Conference have
not always seen eye to eye on
political strategies. So far,
things are different this time
around.
"Nobody is worrying about
turf questions," said
Malcolm Hoenlein, ex-
ecutive director of the Presi-
dents Conference. "In a lot of
respects, we have really
turned a corner. Each organ-
ization is doing its thing —
giving full expression to its
institutional interests, but
also being sensitive to the
overall effort."
The fact that the Jewish
community has pulled
together with minimal fric-
tion, said another Jewish ac-
tivist, has given the loan
guarantee effort a major
boost.
"The peace process and the
pressure the administration
may try to use on Israel re-
mains a big question mark,"
said Dan Mariaschin, direc-
tor of public policy for B'nai
B'rith International. "But
mostly I'd say we're further
along than we expected to
be. This has been just a
tremendous effort."
Jewish activists responsi-
ble for planning strategy for
the loan guarantee effort are
confident they can prevail in
Congress.
But they are less confident
about their impending con-
frontation with budget di-
rector Richard Darman.
Mr. Darman's dominant
role in the debate is the
result of last year's chaotic
budget summit and some
new accounting rules for the
federal budget. In the past,
Congress has never had to
appropriate money for loan
guarantees. Actual loans
were scored against the
budget the moment they
were made; guarantees, of
the sort being requested by
Israel, were not scored
against the budget at all.
But the budget agreement
required the government to
assess the risks of default in
any U.S. loan guarantees,
and score an appropriate
figure against the current
year's budget. Currently,
the Office of Management
and Budget — Mr. Darman's
bailiwick — is doing an in-
tensive study of the Israeli
economy to determine if it is
In the past, AIPAC
and the Presidents
Conference have
not always seen
eye to eye on
political strategies.
a good enough credit risk for
$10 billion in guarantees.
History suggests that
Israel is not likely to leave
Uncle Sam holding the bag.
But other considerations —
including the administra-
tion's current Middle East
peace efforts — may dictate
a different conclusion from
OMB; under the terms of the
budget agreement, the final
decision about scoring the
costs of Israel's guarantees
is in the hands of Mr. Dar-
man.
"Basically, he has to come
in with a figure to be used in
the budget," said a leading
pro-Israel activist here. "He
could set it low, like 1 per-
cent of the total amount of
the loans — something that
would certainly encourage
Congress to pass the loan
guarantees quickly. Or he
could set it very high — 7 or
8 percent, which would give
Congress pause."
Unlike Congress, Mr.
Darman's budget fiefdom is
not particularly accessible to
pro-Israel lobbyists. Earlier
this year, Mr. Darman led
the fight against $650 mill-
ion in additional aid to help
Israel deal with the costs of
the Gulf war — a fight the
powerful budget director
lost.