January 24, 1992

Secy. of State Baker, Israeli ambassador to U.S. Shoval begin discussions in Washington on Israel's request for U.S. loan guarantees, which it wants spread over five years. Baker proposes compromise whereby U.S. would provide guarantees and allow Israel to complete the approximately 9,000 homes currently under construction in o.t.; new housing starts would not be allowed, and U.S. would deduct the amount spent by Israel completing present construction from the loan guarantees. (NYT 1/25, 2/5)