Mon September 15, 2003 04:25 PM ET WASHINGTON (Reuters) - The Bush administration said on Monday it planned to withhold some funds from Israel because of its settlement activities in Palestinian areas. The deductions would come from a $9 billion package of U.S. loan guarantees to help Israel weather a deep recession and fiscal crisis. But administration officials said they have yet to decide whether to penalize Israel for building a fence through the West Bank. Congressional aides doubted the White House would carry out that threat. Under legislation authorizing the loan guarantees, the United States would deduct from the...