INSIDE WASHINGTON

An Uplifting Experience

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Fear & Loathing
On Loan Guarantees

JAMES D. BESSSER

Washington Correspondent

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36

FRIDAY, MARCH 6, 1992

umors, trial balloons
and disinformation —
all the things that
make Washington a kind of
theme park for journalists —
were in unusual abundance
last week, as reporters and
Jewish activists tried to
decipher clues suggesting a
possible compromise on
Israel's request for $10
billion in loan guarantees.
On Monday, while testify-
ing before a House subcom-
mittee, Secretary of State
James Baker, signaled the
administration's unbending
, determination to link the
guarantees to Israel's set-
tlements policies.
On Tuesday, major news-
papers carried stories sug-
gesting an imminent com-
promise on the guarantees.
Sen. Robert Kasten, R-
Wis., the chief sponsor of the
loan guarantee legislation,
and Sen. Patrick Leahy,
D-Vt., were reportedly de-
veloping a package that
would provide legislative
authorization for the guar-
antees, but give the ad-
ministration considerable
flexibility in negotiating an
agreement with Israel.
Some pro-Israel groups
shared the view that the
compromises under con-
sideration represented the
only hope for action on the
guarantees before the end of
the year. But by week's end,
there were hints of rebellion
among Jewish groups: why
should the pro-Israel com-
munity accept any
"compromise" that would
give the administration
what it had originally
sought — the ability to use
the guarantees as a cudgel
in its battle against set-
tlements?

James Baker:
Compromise in the works?

As the negotiations
dragged on, pro-Israel
groups found themselves in
an agonizing position. In
several conference calls,
Jewish leaders vented their
frustration over their lack of
input to negotiations that
were limited to a few key
senators and administration
officials.
The leaders were also con-
cerned about how to sell
such a compromise to their
members — assuming the
Shamir government could be
persuaded to accept a polit-
ically expedient formula
that would look, to many
Americans, like a major
defeat.
"We still regard these
guarantees as absolutely
essential for Israel," said a
top executive with a major
Jewish group. "But tactical-
ly, this is becoming a night-
mare. Given the political
realities, it's incredibly hard
to discern the line between
compromise and defeat. It's
been a very hard week."

Redistricting May
Topple Some Jews

For a number of Jewish
legislators, 1992 promises a
big dose of political indiges-
tion because of a dread word:
redistricting.
Thanks to American cities'
changing demographics and
Jews' migration from key
metropolitan areas, several
important Jewish legislators
could be in jeopardy when
the final district maps are
drawn.
The most desperate fight is

in New York, where a worst
case scenario predicts that
six popular Jewish in-
cumbents could be forced to
run for only three seats.
Changes in population
mean that New York must
carve out at least one
majority Hispanic district.
This could result in the long-
talked-about race between
Brooklyn titans Rep. Chuck
Schumer and Rep. Stephen
Solarz, both Democrats with

