European Stars And Stripes (Newspaper) - March 16, 1987, Darmstadt, Hesse                                Monday March 16, 1987 the stars and stripes Paga 9 israeli says spy ease Tel Aviv Israel api a Farmer foreign ministry official said saturday in Pollard spy episode Vio lated a formal agreement Between Israel and the United Stales not to spy on each other. Shlomo Avineri a leading israeli academic and for Mer director general or the foreign ministry said the agreement Between the two allies had existed for sever Aly cars ave Nacri s comments indicated that a More Olti Cial arrangement concerning espionage Between the two countries than had previously been assumed to exist. Until now. Officials had referred Only 10 an unspoken understanding Between Israel and the United Stales thai they would not engage in espionage activity against each outer. There has been a formal understanding Between the United states and Israel hot to spy on one Aneth  Avineri said in a Telephone interview. Avineri refused to elaborate on details of the agreement including whether it was it Whiten form saying Only it has been in existence for some  the Pollard episode was in Clear violation of thai agreement Avineri said. Jonathon Jay Pollard j2, a former . Navy intelligence analyst was sentenced last week to life in Pris on for Selling Israel classified . Military informs lion. His wife. Anne Henderson Pollard 26, was Given a five year prison term for her role in the spy a Fafnir. The Pollard Case has deeply strained a club Ion Between the two allies. Israeli analysts say they fear the affair May harm intelligence cooperation or . Aid to the jewish stale which now totals about 13 billion a year. American officials were particularly angered by the recent promotions of Viem Scala. An air Force official who recruited Pollard and Rafael Eitan a former intelligence officer who ran the spy operation. Foreign minister Shimon Peres admitted Friday that the government had erred in promoting Sells to head an important air Force base and Eitan to head the suite owned Israel chemicals co. To simply in do a mis Liila i is said to an inter View on Israel television when asked about the promo Lions. Peres said he was confident the government s Deci Sion last wednesday to appoint a two Man investigatory panel to probe the Pollard Case would defuse rising tensions with the United states. But opposition Leaden and jurists have critics cd israeli leaders for appointing a panel whose decisions would not be legally binding on the government. Cir Zorca a retired general who is a respected israeli analyst saying that the Cabinet panel is with out  said saturday the government should have appointed a judicial commission of inquiry instead. Zorea who headed a probe into the 1984 beating deaths of two captured palestinian bus hijackers said he hoped the Pollard investigators would implicate any politicians involved if they found the politicians guilty of wrongdoing. Amelco s new card spurs visa retaliation drive Washington apr the issuers of visa credit cards arc pushing Banks to drop american express traveler s checks As a protest against the new lower inter est Optima card. . Russell president of visa .a. Inc., said in telegrams to the 5.500 Banks that Issue visa cards that the new Ameri can express card is positioned to be directly competitive with your visa and Mastercard  the new card is an attempt by Amer ican express to further its presence in the retail banking Market by acquiring an additional relationship with your belter  said the Telegram released Here Friday. Russell suggested thai Bankers Call american express to complain about the move into one of your most profitable lines of service he added you May wish to rethink your position in offering american express  a. Wayne Johnson. Visa executive vice president said in a Telephone interview thai Banks have sold american express traveler s Cheeks for years at an insignificant profit simply loss rec . In return american express stayed out of the lending business their regular cards require payment in full each month. But that symbiotic relationship has changed Johnson said because the new Optima card will compete directly for the credit Market that includes the 10 million affluent holders of visa Premier or Mastercard Gold cards. American express has inexplicably and forever changed the environment John son said and the nation s Banks should american express says it Wilt offer the Optima card in addition to its regular card a Man that s irked at Lens one Campt altar. Have the right to reconsider Selling the trav Eler s checks fits new competitors. But Walter Montgomery senior vice president of american express said the visa Telegram seems like an voc Recac  we re engaged in a very selective marketing Effort Montgomery said in new York. We re not trying to compete head to head american express announced tues Day that it would offer the new Optima card to people who already hold an american express card. The Optima would Cost an additional $ 15 a year on lop of the $45 for a regu Lar american express card but it would offer credit at a 13.5 percent annual in Terest rate substantially less than most visa cards charge. Russell s Telegram was released Here Fri Day by the consumer Federal Ion of Ameri Ca which said it was asking the Justice department to investigate whether visa was applying anti competitive pressure in an Effort to maintain the comparatively High inner Cost rates on visa cards. Johnson said however that visa cards generally arc cheaper than the new Optima card when annual fees arc factored in. The complaint he said is that Ameri can express was breaching its Long stand ing relationship with the Banks. Bush pushed Friend s project documents indicate Washington up vice presi Dent George Bush intervened on behalf of a family Friend Laic last year to Speed the approval of a Small hydroelectric Power project near Yosemite National Park according to Federal officials and government documents an official of the Federal Energy regulatory commission said Bush s intervention prodded Fern to pressure the Forest service to acl on the project in California or be Cut out of the review process altogether. Documents show Fern exerted the pressure on the Forest sen ice two weeks after being contacted by Bush s office Bush s office denied that the vice president or any aide a jerked any political pressure saving its involvement in the matter consisted solely of routinely pats ing an a constituent s concerns Bush s office was acting on behalf of a longtime Bush family Friend William Dyer of Newport Beach calif., the Fin Ancier for the project. Fern has the authority to Issue Pem iils for hydroelectric projects. The foam serv ice however has authority to review the projects and to impose conditions such As protecting the environment and fish and wildlife on the applicant. Fern is required to include such conditions in any permit it issues. Fern official Thomas do with said that last dec. 4, two weeks after receiving an inquiry from Bush s office he warned the Forest service that Fern could approve the California project without Forest service involvement if thai Agency did not act on the application by Dee 16. The Forest service gave its approval imposing certain conditions a Day after the deadline Mcwill said he had never before is sued such a warning to the Forest service on a project but the inquiry from Bush s office had been the  while acknowledging that he had pressured the Forest service he denied Bush s office had pressured him. Opponents of the $5.4 million project charge that Bush s involvement caused the Forest service to act favourably on the application despite serious misgivings Over the potential environmental and visual Impact of the project. Project opponents said they fear environmental damage will be caused in constructing a dam in diverting water from Lewis Fork Creek and in building n 7,000-foot pipeline. Proponents say it would provide much needed Power to 1,100 Homes and would not damage the environment. Bush aide Barbara Lowe confirmed she made at least two Calls to the Forest sep. Ice regional office in san Francisco last summer and she wrote Fern nov. 20 to ask that Agency to look promptly into the delays in the handling of the project application. A copy of her correspondence with Fern was also sent to the agriculture department of which the Forest service is a part. Lowe s request to Fern stated briefly can this be resolved?.1 a least  she also asked the Agency to Lake action on her inquiry within two Days and a follow up with a memorandum to be addressed to Bush personally. Her letter was accompanied by iwo idlers sent to Bush office in september by Dyer a landscape architect Consul Tant and investor in Energy projects. His father. Hector Dyer a retired oilman also wrote Bush about the project but his letter was not forwarded to Fern or the Forest service Lowe said. The Dyer and Bush families were neigh ban More than 35 years ago when both families were in the Oil business. Neither Dyer could be reached for comment Dow Tel. Chief of Fern s land use Sec Tion said he knew before he received the. Correspondence from Bush s office that Bush and William Dyer Are friends. He said the request from Bush s office helped Dyer by gelling his application special attention from among a Large backlog of applications pending with the Forest service. But he said bus i s intervention in no Way    nor caused a favourable for est service Aci Iun. Do win said it is usual for members of Congress to request action for constituents on Long delayed projects bul thai this was the first such request from Bush or from any vice president during do win s in years u Ith the Agency