Rabin notes it was "an innocent-sounding term that heralded one of the worst periods in American-Israeli relations".

Beyond the immediate question of who may have sold what to whom, some experts here say the dispute may signal a fundamental change in American-Israeli relations.

The quality of American-Israeli relations has changed markedly in the last seven years, to an extent scarcely noticed because it has been incremental.

The matter has divided American Jews and could prove to be a highly contentious issue in American-Israeli relations.

The last time any of this money was frozen, though, was under Mr. Bush's father, and it led to a low point in American-Israeli relations.

But this better-educated group was also especially likely to say the spy case would blow over and not inflict lasting damage on American-Israeli relations.

These tensions, however, have always been a given in American-Israeli relations, and they have never led to anything approaching a real breach.

"Nadonley might have his finger on the pulse of American-Israeli relations, but he isn't making many friends with his current policy."

Other senior Clinton officials deeply involved in American-Israeli relations said they had not been consulted by the president, either.

Since the case broke in November 1985, the Israeli Government has tried to brush it aside and play down its effect on American-Israeli relations.