!INSIDE WASHINGTON
FALL COLORS OF BENETTON.
F-15 Sale Has
Silver Lining
JAMES DAVID BESSER
Washington Correspondent
W
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hen it finally came,
the administra-
tion's announce-
ment that it was officially
proposing selling 72 F-15
fighters to Saudi Arabia was
distinctly anti-climatic. For
weeks, the decision was
common knowledge in
Washington; the only ques-
tion was when the an-
nouncement would be made
to maximize its political im-
pact.
Several legislators quickly
introduced "resolutions of
disapproval" based primari-
ly on concerns about the con-
tinuing arms race in the re-
gion.
But the announced sale
could have a silver lining for
Israel.
Sources here say there was
an unprecedented level of
consultation with Israeli of-
ficials, including discussions
on basing and on the high-
tech equipment being sup-
plied with the airplanes.
More importantly, several
high-level committees have
been created at the Depart- E,
ment of Defense to discuss
enhanced military coopera- 0=4
tion between Washington Li
and Jerusalem. The com-
mittees will look at high-
tech research and develop-
ment programs for
upgrading Israel's current
military equipment and s
"pre-positioning" American
military supplies in Israel.
The result — if the Pen-
tagon follows through —
could be more than just an-
other package of goodies for '5=--
Israel's military. Said Jess _
Hordes, Washington director ` ---n
of the Anti-Defamation
League, "This is designed to
strengthen the military re-
lationship in a very broad
way. It could be a new, im-
portant way to try to main-
tain Israel's qualitative
edge."
Although Jewish groups
are still not happy about the
sale, many Jewish activists
believe the administration's
new concern about Israel's
military edge could bode
well for U.S.-Israeli rela-
tions.
Loan Guarantees
Finally Proceeding
Two weeks ago, the $10
billion in loan guarantees
for Israel was jeopardized by
how they would be "scored."
With Congress beginning to
chew on the guarantees'
implementing legislation
this week, that problem ap-
pears to be resolved.
What happened?
The answer seems to in-
volve a mix of raw political
pressure and bargaining
between Jerusalem and
Washington.
Israel had agreed to pay up
to 3.5 percent of the total
amount of the loans in scor-
ing costs — a kind of carry-
ing charge required by the
Budget Reform Act.
But several weeks ago, Of-
fice of Management and
Budget Director Richard
Darman said the law re-
quired him to set the figure
at seven or eight percent — a
figure that could cause big
trouble in a Congress spook-
ed by the specter of new elec-
tion-year outlays.
According to congressional
sources, the high figure was
the result of internal OMB
concerns.
"Darman was determined
to maintain the integrity of
the scoring process," said a
House staffer involved in the
discussions. "He came in
with a high figure to make a
point and without regard for
the administration's diplo-
matic agenda."
When pro-Israel groups
reacted with concern, the
administration —which had
hoped to put the loan guar-
antee controversy behind it
and possibly pick up a few
Jewish votes in the process
— quickly nixed Mr. Dar-
man's decision.
The reduction in scoring —
which represents more than
$60 million —was also in-
fluenced by some strong in-
put from members of Con-
gress.
But Mr.
Mr. Darman did win a
partial victory: The final -
scoring costs will be around
4.5 percent — a number that
Israeli Prime Minister Yit-
zhak Rabin apparently ac-
cepted.
Although some pro-Israel
leaders are not happy that
the legislation will give the
administration considerable
discretion in releasing the
guarantees, Prime Minister
Rabin "agreed to this ap-
proach," said a leading pro-
Israel activist on Capitol
Hill.