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"Our response to Iraqi moves was wishy-washy," said Tom Neumann, executive director of the Jewish Institute for Nation- al Security Affairs 'The bottom line is that Saddam is still in Northern Iraq; he felt the sting of the United States, but not its power. As long as he comes up with a net gain, it encourages fur- ther aggression." And that, he said, adds to the Iraqi dictator's ability to cause mischief throughout the Middle East. On the other side of the spec- trum, supporters of the Rabin- Peres peace policies worry that the perception that the Clinton administration backed down af- ter its military strikes failed to dislodge Mr. Hussein will make it harder for this country to play a forceful role in the troubled ne- gotiations between Israel, Syria and the Palestinians. Mr. Deutch also told lawmak- ers that initially, there was "no support" for the American air strikes from members of the coalition that fought Mr. Hussein in 1991, and that Mr. Hussein's prospects for political survival appear good. Saddam Hussein: New threats? Those realities, peace process supporters worry, damage Amer- ican credibility as a major play- er in the region. At the same time, there are growing indications of a fierce de- bate in the inner sanctums of the administration over this coun- try's policy toward Iran. "There are powerful forces in the National Security Council who insist that our interests clearly lie with some kind of rap- prochement with Teheran, or at least a fundamental redefinition of the idea of 'dual containment,"' said an official with a major pro- Israel group here. 'That adds to the impression that when it comes to its broader Middle East policy, this administration is very much in disarray." Pro-Israel groups, which have made Iran sanctions a top prior- ity, are watching the inter- nal administration debate with concern, according to sources here. David Duke Defeated Again This year's David Duke scare is over. On Saturday, the former Klan leader's second bid for a Senate seat crashed with a dull thud in Louisiana's oddball open primary, in which the top two finishers — regardless of party affiliation — get a chance to run in the November election. Mr. Duke, running as a Re- publican on a platform that in- cluded the ever-popular notion of limiting immigration, came in fourth, with some 10 percent of the vote. The winners were Woody Jenkins, a Republican state leg- islator, and Mary Landrieu, a Democrat and a former state treasurer. Mr. Jenkins, the top vote-getter, came from behind after national Republican lead- ers — worried about the possi- bility of a one-two finish by Democrats or a strong showing by Mr. Duke — endorsed him in the final days of the campaign. According to reports here, the Dole-Kemp campaign team pushed strongly for the last- minute endorsement. But much to their distress,