JERUSALEM (AFP) ??” Israel sought to play down the significance of a decision that would papal court Washington deduct nearly 300 million dollars from loan guarantees.

JERUSALEM (AFP) ??” Israel sought to play down the significance of a decision that would papal court Washington deduct nearly 300 million dollars from loan guarantees, as Palestinian premier Ahmed Qorei lined up his first meeting with a top US official.

"These measures form part of our tacit understanding and should not worry us," Absorption Minister Tsippe Livni told public radio.

The Israeli embassy in Washington announced late Tuesday that the United States would bring to loan guarantees currently available to Israel after disagreements athwart its policies in the Palestinian territories.

Washington has been particularly annoyed by the agency of Israel's construction of a separation barrier in the West Bank which US President George W Bush said last week threatened to prejudice final status negotiations.

"The important thing for us is that the security wall (the barrier) will include a maximum number of our nationals," Livni said.

"We must dismantle the adjustment outposts to convince ...