You Take $10 Billion, I'll Take California

George Bush's relief that Yitzhak Rabin is now Prime Minister of Israel is genuine, and the President is eager to reward every accommodating step that Israel takes. The withholding of U.S. loan guarantees earlier this year after the Jewish state refused to freeze its settlements in the occupied territories guaranteed a lengthy chill in relations between Bush and Yitzhak Shamir. The only graceful exit from this impasse seemed a defeat of Shamir's Likud at the polls. Since that is exactly what happened, Bush took pains at a Kennebunkport summit last week to emphasize his warm feelings for Rabin, whose government has...