ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, March 2, 1990                   TAG: 9003023181
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A8   EDITION: METRO 
SOURCE: Angeles Times
DATELINE: WASHINGTON                                 LENGTH: Medium


ISRAEL GETS ULTIMATUM/ U.S. SAYS STOP WEST BANK, GAZA SETTLEMENT TO GET AID

Secretary of State James Baker said Thursday that Israel must end all settlement activity in the West Bank and Gaza Strip if it hopes to obtain U.S. funds to house an expected flood of Jewish immigrants from the Soviet Union.

By linking Israel's request for $400 million in housing guarantees with Washington's longstanding criticism of settlements in the occupied territories, Baker turned up the heat on Prime Minister Yitzhak Shamir as Shamir prepares for a meeting of his government's top leadership to consider what may be the final American attempt to start a dialogue for peace between Israel and its Arab adversaries.

A spokesman in Jerusalem said Shamir plans to meet with key policy-makers in Israel's coalition government no later than Sunday.

Baker outlined the process, which would begin with a meeting of the foreign ministers of Israel, Egypt and the United States, to Arens when the foreign minister visited Washington last week. He reportedly told Arens bluntly that unless Israel responds to Arab compromises with concessions of its own, Washington may end its Middle East mediation, at least for now.

Appearing before a House Appropriations subcommittee Thursday, Baker emphasized that the next step is up to Israel.

"We've really done pretty much all we can do, we think, from our end, and we are awaiting a response from the Israeli government," he said.

Asked for the administration's position on Senate legislation to provide $400 million for housing Soviet Jews in Israel, Baker said it probably could support the bill "if the government of Israel could . . . provide some assurance that it would not be engaging in any new or additional settlement activities" in the West Bank and Gaza Strip.

Israeli officials have said they will never agree to stop building or expanding Jewish settlements there.



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