WASHINGTON -- Israel can push even U.S. President George W. Bush too far. The Bush administration says it will cut $290 million of $3 billion in promised loan guarantees because Israeli Prime Minister Ariel Sharon's government continues to construct settlements and a security fence in the West Bank, effectively annexing Palestinian areas to Israel.

"It's none of their business," responds Zitrin Eliezer, an Israeli settler in the West Bank. In fact, Israel's policies wouldn't be America's business if Washington wasn't backing Israel. And if that backing didn't in turn foster hatred of and terrorism against America and its allies.

There is no excuse for Palestinian suicide bombing, but Israeli actions also exacerbate hostilities. For a time Israeli officials publicly discussed assassinating or exiling Palestinian leader Yasser Arafat.