Israel's hopes for $10 billion in U.S. loan guarantees to help resettle Soviet Jews were dashed by an impasse between the White House and Congress over Jerusalem's settlement policies, congressional and administration officials said.
Neither side was willing to say publicly that the guarantees were dead, fearing political blame. But privately, both administration and congressional officials said it was beyond hope. "It's gone. I think it's down the tubes," said a senior administration official who spoke on condition of anonymity.