Israel Can’t Defy U.S., Baker Asserts

WASHINGTON —  Secretary of State James A. Baker III, preparing to resume negotiations over terms for $10 billion in housing loan guarantees for Israel, said Wednesday that he is determined to prevent the government in Jerusalem from using the money to defy U.S. opposition to Jewish settlements in the West Bank and Gaza Strip.

Responding to questions from the Senate Foreign Relations Committee, Baker said the Administration wants to help Israel resettle an influx of refugees from the former Soviet Union but is not willing to provide “additional assistance in a manner that is contradictory to . . . the long-established policy position of the United States.”

Baker is scheduled to meet Israeli Ambassador Zalman Shoval on Friday to resume the talks that began Jan. 24. At that time, according to sources, Baker called for a cap on settlements that would permit Israel to complete houses already under construction, as long as no new buildings were started.