Israel's Rep. Speaks to Media

Boston--Yaakov Levy, Consul General of Israel to New England, told college journalists yesterday that the U.S. should not link loan guarantees to Israel's policy of settlement in the occupied territories.

In a press conference at Israel's general consulate, Levy discussed the country's role in the ongoing Middle East peace conferences and answered questions about the growing controversy over U.S. economic assistance.

United States Secretary of State James A. Baker III announced Monday that the U.S. will tie loan guarantees to an agreement to halt Jewish settlement in the West Bank and the Gaza Strip.

"Our reaction in principle to such a linkage...is a negative reaction," Levy said. "We see [the loan guarantee] as an independent and humanitarian subject."

Levy said that the loan guarantees are unlikely to cost American taxpayers any money because the Israeli government has a history of "always paying back" loans.

The consul was asked what Israel will choose to do, given the options Baker has offered.

"In our judgment we have not reached that point," Levy said. "We'd still like to negotiate a compromise."

Levy was questioned about the recent military skirmishes in Lebanon between Israeli soldiers and Arab in the occupied territories.

He defended Israel's actions against Hezbollah, calling them an "extreme radical terrorist group."

The consul also said that Israel's commitment to welcoming Jewish immigrants remains strong.

"The whole raison d'etre of Israel is to be a haven for Jewish immigrants," he said.

Without the requested loan guarantees, he said, Israel will have more difficulty achieving that goal.

Levy gave a brief speech about Israel's past and future peace negotiations and said talks will occur at five different sites later this spring.

He said the conferences will address topics such as economic cooperation, the environment, arms, refugee policy and water problems.