U.S. Secy. of State Baker appeals to U.S. Congress to delay considering request for loan guarantees to Israel until after the proposed peace conference. (NYT 9/5)
Israeli cabinet votes sharp increase in 1992 defense budget. Some Israeli officials state that the 6% increase might heighten the difficulties in obtaining U.S. loan guarantees. Budget will also cut settlement building in 1992. Defense ministry pushed for increased military budget while finance ministry sought cuts in def. spending to help balance the budget. (MEM 8/29; NYT WP 9/5)
Israeli press notes 24 Soviet Jewish families will move to Qela', a settlement in Golan Heights, as part of a move to convert the settlement from a paramilitary settlement to a civilian town. (Davar 9/4 in FBIS 9/5)