June 9, 1993

PM Rabin cited as favoring $10b in U.S. loan guarantees, approved in 1992, on political, not economic grounds. Washington Post quotes him as saying, "I came to the conclusion that the issue of guarantees had turned into a test of Israeli-US. relations." Report notes that Israeli economists and former govt. officials believe Israel no longer needs the U.S. money. Funds obtained through loan guarantees are being spent on infrastructure and building foreign currency reserves, not assisting Russian immigrants, report says (see 6/23). (WP 6/9)