World IN BRIEF : ISRAEL : Quayle Links Loans to Settlements Issue

Vice President Dan Quayle warned visiting Israeli Defense Minister Moshe Arens that Washington would find it difficult to support billions of dollars in loan guarantees for Israel while settlements in the occupied territories are being rapidly expanded, a spokesman said. Quayle, widely viewed as one of Israel’s strongest supporters in the Administration, thus “held to the line” previously relayed to Israeli leaders by President Bush. The President has become increasingly frustrated with the expansion of settlements while the U.S. is trying to promote peace.