Subscribe to Print Edition | Mon., March 10, 2008 Adar2 4, 5768 | | Israel Time: 20:38 (EST+7)
Haaretz israel news English
web haaretz.com
  Back to Homepage
Rosner's Domain
Diplomacy
Defense Jewish World Opinion National
Print Edition
Advertising
Books Arts & Leisure Business Real Estate Easy Start Travel Week's End Anglo File
Prime Minister Ehud Olmert addressing the U.S. Congress in May 2006. (AP)
Last update - 10:32 08/02/2007
Israel, U.S. begin discussions on renewal of foreign aid package
By Shmuel Rosner, Haaretz Correspondent

Israeli officials have been discussing over the past few months how much financial aid Israel should request from the United States in the coming years.

The issue has come up for initial discussions with the Bush administration, and will be raised again at a meeting in Washington next month. Prime Minister Ehud Olmert is due to make the final decision on the matter.

The Bush administration this week asked Congress for $2.4 billion in financial aid for Israeli security needs, the highest amount possible under America's current agreement with Israel.
Advertisement
The financial aid issue is on the table once again because the previous agreement expires this budgetary year, after being in effect for a decade.

As prime minister, Benjamin Netanyahu said in 1997 that Israel was interested in reducing, to the point of eliminating, the American funds allocated for civilian purposes in Israel. The agreement reached at the time gradually altered the structure of the assistance. At the time, Israel was receiving $3 billion, of which $1.2 billion was allocated for civilian purposes.

Under the new arrangement, it was agreed that $120 million would be cut from the overall aid package every year, while the funds allocated for security purposes would increase by $60 million. As the agreement comes to an end, the civilian aid no longer exists and the security aid amounts to $2.4 billion.

Initial talks on a new financial aid package indicate that both the American and Israeli governments are interested in renewing the aid in an "orderly manner," as one person familiar with the issue put it, rather than returning to the system whereby Israel has to renew its aid request every year.

Israel needs to make a decision on whether to renew a request for civil assistance, and whether to ask for the current level of security assistance on a long-term basis or request more funding for the security challenges Israel faces.

Several officials told Haaretz that Israel has not made a final decision on these issues, although some said they had reservations about the return of civilian funding. One official noted that the outcome "will have strategic importance," not just on the economic level, but also regarding Israel-U.S. relations. The matter has recently been discussed at the defense and foreign ministries.

The Foreign Ministry convened a group of external experts, including former Israeli ambassadors to the U.S. Zalman Shoval and David Ivri, a few weeks ago to discuss some of the issues related to bilateral relations. The participants agreed that the Bush administration has been one of the friendliest to Israel and that there is an advantage to making agreements with U.S. President George W. Bush before he is replaced by someone else.

Israel also views the newly elected Congress as being friendly, and Israeli officials plan to request meetings with House and Senate leaders from both parties once Israel decides on the financial aid questions, in an effort to reach an agreement that is acceptable to Congress. Financial aid requests related to Israel that are submitted to Congress by the administration are generally approved without a problem, due in part to agreements reached ahead of time with congressional members.

Olmert will make the final decision on Israel's position after consulting with the heads of the defense and foreign ministries. The Defense Ministry, the primary recipient of security aid, has been asked to come up with estimates of Israeli security needs and how much funding they will require. An Israeli official said the Finance Ministry is also involved in some of the preliminary talks.
Bookmark to del.icio.us  
 
State policy
Olmert approves plan for 750 new homes in West Bank settlement of Givat Ze'ev.
Sticking to his story
Director of 'Jenin, Jenin' swears there are no falsehoods in his movie.
  1.   No Funds Until Settlements are Gone 04:49  |  Harris 08/02/07
  2.   cash is allways better than credit 04:58  |  zionist forever 08/02/07
  3.   Expand Jewish Settlement 05:51  |  Steve 08/02/07
  4.   US money transferred to Israel effectively work for SECURITY, 05:58  |  Vittorio 08/02/07
  5.   Assistance agreement 06:34  |  Shmuelshachor 08/02/07
  6.   funding will be based on iran`s tests of cia low uranium nukes. 06:35  |  Mat Tonkin 08/02/07
  7.   Payola 07:29  |  Gordon 08/02/07
  8.   `financial aid` 07:40  |  james 08/02/07
  9.   The Bucks Stop Here 07:44  |  J Olsen 08/02/07
  10.   There should be conditions for aid 07:46  |  RW 08/02/07
  11.   Extortion money 07:52  |  Janet 08/02/07
  12.   wasting American tax payers money 07:53  |  SJ 08/02/07
  13.   To #12 Yes U.S. should send money to Wahabis around the world 08:18  |  Tom 08/02/07
  14.   ENOUGH!!!!!!!! Just GO AWAY 08:54  |  Holden 08/02/07
  15.   #14, Holden 09:16  |  Cipora Julianna Kohn 08/02/07
  16.   J Olsen 09:21  |  Cipora Julianna Kohn 08/02/07
  17.   Israel needs to get off the smack, it has become a junky!!!! 09:30  |  Ben Uziel 08/02/07
  18.   Israel pan-handling again? 09:37  |  John 08/02/07
  19.   #18 - Yes, Egypt 09:50  |  NL 08/02/07
  20.   I wondered when the panhandlers would arrive in Washington 10:08  |  Clickfool 08/02/07
  21.   Olmert`s greed for money 10:24  |  Joseph E . Post 1 08/02/07
  22.   Olmert`s greed for money 10:25  |  Joseph E . 08/02/07
  23.   Schnorrers 10:36  |  hmmmmmm 08/02/07
  24.   Us owes the Jews 10:52  |  un-pc 08/02/07
  25.   Reducing civilians pkg & increasing mltry pkg 11:29  |  Mary 08/02/07
  26.   # 24 un-pc 11:34  |  Mary 08/02/07
  27.   #18 It is hard to wean oneself from 11:47  |  ballistic 08/02/07
  28.   #24 one other thing; what about 11:56  |  ballistic 08/02/07
  29.   Thats why there is building work at Al Asqa 12:24  |  Chris Linthwaite 08/02/07
  30.   shame of the world 12:34  |  un-pc 08/02/07
  31.   we would be better off without the money 13:15  |  flashman 08/02/07
  32.   ballistic on the jews 13:19  |  em-arse 08/02/07
  33.   is ballistic trailer trash 13:20  |  jeez 08/02/07
  34.   #30 un-pc 13:39  |  Chris Linthwaite 08/02/07
  35.   Israel Helps The USA In Ways Some Folks Don`t Understand! 14:02  |  Yosemite 08/02/07
  36.   un-pc please clarify 14:24  |  Skandar 08/02/07
  37.   Enjoy the handout while you can 14:26  |  spyguy 08/02/07
  38.   "Aid to Egypt" is actually aid to Israel -- MORE aid to Israel 14:42  |  U.S. interests FIRST 08/02/07
  39.   # 30 un-pc 15:01  |  Mary 08/02/07
  40.   There is no problem with U.S. aid to Israel..... 15:06  |  Swiss (Dino) 08/02/07
  41.   Very Kind of America 15:07  |  Alicia 08/02/07
  42.   Why are we a nation of beggers? 15:20  |  H.Niedermeyer 08/02/07
  43.   #38 - why the bluff? 15:23  |  Spongebob 08/02/07
  44.   US is Israels greatest ally ....for now.$$$ will NOT stop 15:30  |  albert amato 08/02/07
  45.   spyguy "HOW WILL ISRAEL SURVIVE" 15:32  |  harzion 08/02/07
  46.   spyguy "the end is nigh" 15:34  |  harzion 08/02/07
  47.   spyguy "high paying manufacturing jobs 15:37  |  harzion 08/02/07
  48.   spyguy finally i do agree with you 15:38  |  harzion 08/02/07
  49.   spyguy "how will israel survive" 15:40  |  harzion 08/02/07
  50.   #33 trailer trash are sometimes EDUCATED ! BALLISTIC 15:51  |  paul harris 08/02/07
  51.   Keep sending us US tax-dollars! 15:59  |  Chaim 08/02/07
  52.   #37 MORE PIE IN THE SKY FROM SPYGUY 15:59  |  paul harris 08/02/07
  53.   But OK for Israel to give her enemies... 16:00  |  Morris K. 08/02/07
  54.   Spongebob: "Aid to Egypt" is actually MORE to Israel 16:10  |  U.S. Interests FIRST 08/02/07
  55.   We have no business supporting ANY Holy war. 16:23  |  T A Sheppard 08/02/07
  56.   houdy mary, @26 16:27  |  vladimir 08/02/07
  57.   @26, mary and i am against amer. aid to israel 16:29  |  vladimir 08/02/07
  58.   flashman #31 16:32  |  us citizen 08/02/07
  59.   We need to stop supporting Israel`s 16:35  |  Amer Rica 08/02/07
  60.   First things first with this US aid 16:39  |  Yaakov Sullivan 08/02/07
  61.   # 41 Alicia 16:41  |  Lynn 08/02/07
  62.   # 28 ballistic 16:44  |  Lynn 08/02/07
  63.   #30 what a crock of victom crap you spew! 16:44  |  T A Sheppard 08/02/07
  64.   # 36 skandar 16:48  |  Lynn 08/02/07
  65.   I am tired of this crap! 16:49  |  BwanaVic 08/02/07
  66.   u s citizen and vassal state. 16:52  |  flashman 08/02/07
  67.   u s citizen a great part of the military grant 16:56  |  flashman 08/02/07
  68.   Our presidential candidates have pledged allegiance to Israel an 16:58  |  Apartheid 08/02/07
  69.   aid for a return to 1967 borders 17:07  |  chris 08/02/07
  70.   Give the money to countries who need it 17:09  |  John 08/02/07
  71.   welfare fraud 17:32  |  margaret 08/02/07