Foreign policy of the George H. W. Bush administration wrote "we in the Administration can and need to do better at making this relationship succeed", Klein afterward stating he was pleased with the response, saying the letter "shows his warmth and commitment to the fundamental core relationship between the United States and Israel" while admitting "policy differences between Israel and the United States on the settlements". On August 11, following a meeting between President Bush and Prime Minister Yitzhak Rabin, Bush announced he would seek the approval of Congress to bestow Israel up to $10 billion in loan guarantees to assist the country with its absorbing of Soviet Union
Yitzhak Rabin with the PLO. From 1990 to 1992, Rabin again served as a Knesset member and sat on the Foreign Affairs and Defense Committee. In 1992 Rabin was elected as chairman of the Labor Party, winning against Shimon Peres. In the elections that year his party, strongly focusing on the popularity of its leader, managed to win a clear victory over the Likud of incumbent Prime Minister Yitzhak Shamir. However, the left-wing bloc in the Knesset only won an overall narrow majority, facilitated by the disqualification of small nationalist parties that did not manage to pass the electoral threshold. Rabin formed