Grapevine

By DAVID ELLIS/

TURNING STICKS INTO CARROTS. Senator Bob Dole's proposal to shave Israel's $3 billion in foreign aid has met with heavy resistance. Now some in the Bush Administration are considering using a carrot: encouraging Israel to make peace with the Palestinians by increasing aid. They recall the Camp David accords, in which U.S. aid served as a sort of signing bonus. The rationale then was to compensate Israel for the security costs caused by surrender of the Sinai. The same justification is being considered again: if Israel trades land for peace, the U.S. should defray any expenses associated with the added security risk.

With reporting by David E. Thigpen