How are recent tensions Israel-U.S. tensions different than any other?

The debate between the U.S. and Israel over Jewish settlements in the West Bank has a long and distinguished history. During most of this time, the two sides have managed their differences to avoid bringing bilateral relations to a boiling point.

The last time it erupted with such vehemence as we see now was in 1991, following the first Gulf War and in the run-up to the Madrid peace conference.

The first Bush administration saw an opportunity in the defeat of Iraq and the marginalization of the PLO within the Arab world (the PLO had backed Saddam). The Cold War was coming to a peaceful end, with America securing its place as the world's single "hyper-power."

The Bush administration's new tilt became apparent in a speech to the pro-Israel lobby by Secretary of State James Baker. On May 22, 1989, Baker told the AIPAC annual convention that Arab states must take steps towards normalization and Palestinians must renounce violence. Most famously he said Israel should "lay aside, once and for all, the unrealistic vision of a Greater Israel; Foreswear annexation; [and] stop settlement activity."

To the ears of many of Israel's supporters, Baker's words were like the premiere of Stravinsky's Rites of Spring. It wasn't music to their ears.

Alongside the decline of Soviet power was a relaxation of Soviet emigration policy: Jews were pouring out of the U.S.S.R and arriving in Israel.

Israel wanted to link sympathy for Soviet Jewish émigrés to its requests for loan guarantees to allow Israel to raise money in the capital markets at a lower rate. The administration saw the Soviet Jewish flood as a way to pressure Israel to make a sort of gesture with respect to the settlements, linking the loan guarantee and settlement issues.

Israel responded by growing more aggressive in its settlement policy. On the eve of two of Baker's visits to the region, promoting what would become the Madrid peace conference, settlements were established. These became known as "Baker settlements."

"I know how to stop the settlements," one of Baker's aides, Aaron David Miller told me at the time. "Stop sending Baker to the region." In 1990, Israel had requested and received a commitment for $400-million in loan guarantees to build housing for Soviet Jews.

The administration held the guarantees pending assurances that the money would not be used for settlement construction. Israel submitted a letter signed by then Foreign Minister David Levy, making explicit promises to this effect, but Israel?s policies remained unchanged.

That's when Baker told the visiting Egyptian foreign minister that he had been "diddled" by Levy, to which the minister replied, "Diddled? What is diddled?"

By the summer of 1991, the $400 million in guarantees had been released, but Israel was ginning up to submit a request for another $10 billion.

After Israel sent the State Department a formal request, pro-Israel groups brought supporters to convince members of Congress to back it despite Bush's desire for a four-month hiatus.

The delay would ensure that any debate over settlements would take place after the opening of the Madrid conference. The White House was neither entertained nor intimidated by the display of Jewish lobbying prowess.

Going over the Congress, Bush appealed to the American people at a press conference, arguing for the delay and characterizing the citizen-lobbyists on Capitol Hill as "powerful political forces" and himself as "one lonely little guy down here." After some additional scuffling, Bush got his delay.

The president's words culminated a period filled with testy exchanges, including Baker trying to bar Housing Minister Sharon from any official reception in Washington; a string of nasty accusations between State and Ambassador Shoval; and Baker's comment that there isn't "any bigger obstacle to peace than the settlement activity." This period also produced the infamous "F--- the Jews" quote, attributed to Baker.

Ultimately Israel received the second round of guarantees while the Bush/Baker policy of confrontation opened a front for Bill Clinton, who campaigned for a more pro-Israel policy. Perhaps, in lieu of loan guarantees, the U.S. will link dealing with Iran to a settlement freeze, restricting Israel with one hand while freeing restraints with the other.

Given all the tumult, some stress is hardly surprising. President Obama's search for detente with Muslim states and his public posturing on settlements signal a shift in the "war on terrorism," into which Israel fit rather snugly. America is now in a moment after the moment after 9/11.

As underworld captain Pete Clemenza says to Michael Corleone in the first Godfather film apropos a coming war with other Mafia families, "These things gotta happen every five years or so, ten years. Helps to get rid of the bad blood. Been ten years since the last one."

Well, closer to twenty, but who?s counting?

David Twersky covered Washington for the Forward during the first Bush administration, and was editor of the New Jersey Jewish News.