Introducing the
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If you like these
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100,000 miles

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James Baker was a major player in the Bush administration loan guarantees.

per month/48 months/S1,000 down payment'
includes air and AM/FM stereo cassette

Loan Guarantee Fight
Returns To Haunt Israel

JAMES IL BESSER WASHINGTON CORRESPONDENT

Nobody in the world has numbers like these. A
10-year, 100,000-mile limited powertrain warranty.
The longest of any car.
And if those numbers aren't impressive enough,
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For $199 a month, you could be driving the all•new
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See your Volkswagen retailer for details. But do
it soon. Because with numbers like these, the most
loved cars in the world are likely to become
the most loved cars in America.

The most loved cars in the world.

TROY. MOTOR MALL 649-2300

050 m szp,..,- .1 California/New York emissons) or Jetta III GL w' $14.945 MSRP (excluding CA/NY emissions) inc options listed below $199 first mo.
'Jetta III GL w/15
pmt, $1000
down pmt. gnu $200 ....., able security deposit due at lease inception. Monthly pmts. total $9552 Option to purchase at lease end for 56171 or $6127 respectively Golf III GL
wit13,550 ms,,-,incl Californta/New York emissions) or Golf III GL w/$13,745 MSRP (excluding CAJNY emissions) incl optons listed below. $189 first mo. pmt, 51000 down pmt.
and S20'. etundable security deposit due at lease inception. Monthly pmts. total $9072. Option to purchase at lease end for $5679 or $5635 respectively These offers are made to
nest customers by VW Credit, Inc through parocipating retaiiers through 9,'30/93 48-rno dosed-end lease available on '93 models Incl. sunroof, air corx:1, AM , FM stereo cass and
dest charge, less customer's $1000 down pmt. and retailer capitalized cost reduction of 5500. which could affect heal negotiated transaction Other opbons. retailer prep , taxes, reg . is
extra. Lessee responsible for insur. At lease end, lessee responsible for $0.10/mile over 60,000 miles and for damage and excessive wear See your retailer for details

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he controversy over Is-
rael's $10 billion in Amer-
ican loan guarantees has
resurfaced at a particu-
larly delicate moment :-- "'''''
Israeli relation ,-
.
ThelP'- --- cnapter ui the saga
ca ,-- , uast week when the Clin-
con administration cut next
year's guarantees, which will
back up loans made by private
banks, by some $437 million.
Those cuts, according to ad-
ministration officials, were
mandated by language in the
original enabling legislation cut-
ting each year's guarantees by
a figure equal to the amount
spent on settlements in the
West Bank and Gaza, and on
construction in east Jerusalem.
Despite some early news re-
ports and some conflicting sig-
nals from Israeli officials, the
cuts were not a surprise to the
leadership in Jerusalem or to
pro-Israel activists on Capitol
Hill.
But the timing of the an-
nouncement, only weeks after
the historic turnaround in the
Mideast peace talks, produced
anxiety among some of Israel's
friends in the capital. That anx-
iety may have been magnified
by pro-Israel activists eager to
negotiate a smaller cut.
"The $437 million figure re-
flects the Israelis own figures
on the price tag of settlement
activities," said a Senate staffer
who was part of the loan guar-
antee deliberations. "What the
Israelis seem to be doing is us-
ing the new climate in the
Mideast to try to cut a better
deal.
"That makes good sense from
their point of view, and it prob-

ably would make sense for the
,
ace
a
administration to n f „ --t.i,
lower urns time.
ne original legislation was
passed when the Likud gov-
ernment's aggressive settle-
ments policies were a major
source of friction between
Jerusalem and the Bush ad-
ministration.
The dollar-for-dollar cuts, in-
serted into the enabling legis-
lation by Sen. Patrick Leahy,
D-Vt., the powerful chair of the
Foreign Operations Appropria-
tions Subcommittee, were ac-
cepted as part of the loan
guarantee deal by the incoming
Labor government, even though
Prime Minister Yitzhak Rabin
immediately announced a re-
versal of Likud's settlements
policies.
Now, that government is be-
ing asked to ante up for the ac-
tions initiated by a previous
regime.
But Israeli officials in Wash-
ington have decided that fight-
ing the penalties would be a big
mistake.
For one thing, Mr. Leahy is
using all his considerable clout
to hold out for the full assess-
ment.
Moreover, the Israelis are ea-
ger to avoid a showdown with
an administration that has
brought a new warmth and lev-
el of cooperation to U.S.-Israeli
relations.
Instead, Israeli officials are
working quietly to win a com-
pensation package that would
help offset the cut in the guar-
antees, or a loosening of the re-
quirement that the guarantees
be used primarily for Israel's ab-
sorption of refugees. ❑