Administration officials said the issue is almost certain to affect the negotiations over a proposed $400 million housing loan guarantee program to help resettle Soviet Jews In Israel. The proposal. which has passed the House and is pending before the Senate Appropriations Committee. has been backed by the administration only on the condition that the Israelis assure the adminIstration that none of the funds will be used to settle the Soviet Jews In East Jerusalem or the West Bank. U.S. proIsrael groups criticized the administrations position. saying that it in effect would bar Israel from using its own money to help settle the Soviet immigrants. Administration officials said privately that the takeover would give them a stronger leg to insist on those assurance. adding that the incident also would give ammunition to those who question the level of U.S. aid and closeness to Israel. especially to Senate Minority Leader Robert J. Dole (RKan.).
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immigrants