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Prime Minister Ehud Olmert and U.S. President Bush during their meeting at White House in June. (Archives)
Last update - 02:26 17/08/2007
Israel, U.S. formally sign new defense aid agreement
By Barak Ravid, Haaretz Correspondent
Tags: defense, aid, Israel, U.S.

Israel and the United States signed Thursday a Memorandum of Understanding on the new American defense package for Israel. Under the new aid agreement, the U.S. will transfer $30 billion to Israel over 10 years, compared with $24 billion over the past decade.

The aid deal signed at represents a 25 percent rise in U.S. military aid to Israel.

Israel is slated to receive the first pay out in October 2008, amounting to $2.55 billion. That sum will grow each year by $150 million, until it reaches $3.1 billion in 2011.
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In addition, the agreement permits Israel to convert into shekels 26.3 percent of the aid money, thereby enabling it to procure defense equipment from Israeli companies. The rest of the aid must be used to purchase equipment from American military industries.

The agreement was signed in Jerusalem by U.S. Under Secretary of State for Political Affairs R. Nicholas Burns and Foreign Ministry Director General Aharon Abramovich. Burns then met with Foreign Minister Tzipi Livni.

"There is an axis of cooperation between Iran, Syria, Hezbollah, Islamic Jihad and Hamas that is responsible for the violence in the region," said Burns at a press conference following the signing. "A strong and secure Israel is an American interest."

According to the memorandum on the accord, an annual review will be conducted into the manner in which Israel is spending the military assistance.

Israeli negotiators tried to step up the percentage of aid that could be used for procurement from local companies, without success.

Prime Minister Ehud Olmert met Wednesday with Burns, in preparation for Thursday's signing.

Olmert asked Burns to thank U.S. President George W. Bush and Secretary of State Condoleezza Rice for their efforts in transforming the understandings with Olmert, reached during his last visit to Washington, into a binding agreement.

"The aid agreement with the U.S. is an important and significant component for Israel, and proves once again the depth of the relationship between the two countries and the United States' commitment to Israel's security, and to preserving its qualitative advantage over other countries in the Middle East," Olmert said.

Burns met Thursday morning with Bank of Israel Governor Stanley Fischer, who headed the Israeli team in negotiations with the U.S.

Burns also met Wednesday with Transportation Minister Shaul Mofaz, who oversees the strategic dialogue with the U.S. Mofaz and Burns agreed to hold a strategic dialogue in mid-October on Iran and Lebanon.

The United States is also proposing a large weapons package to Saudi Arabia, which has historically been an Israeli enemy but has indicated a willingness to attend a U.S.-backed peace conference with Israel in the fall.

Olmert has said he understands the U.S. need to bolster Saudi Arabia in facing Iran. "The increase in military aid to Israel would guarantee its strategic superiority," Olmert has said, despite upgrades to other Arab countries in the region
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  1.   And the U.S. Government has the hide to investigate... 06:52  |  Maureen Ann 16/08/07
  2.   Maureen Ann -- any complaints about 07:35  |  Gina 16/08/07
  3.   Gods priority. 07:48  |  Billy Jack 16/08/07
  4.   wrong, Maureen 08:00  |  Theodor 16/08/07
  5.   maureen 08:11  |  rayman 16/08/07
  6.   BILLY JACK Most of that aid stays in the US economy 08:27  |  PETERS SM 16/08/07
  7.   to # 3 08:36  |  al.N 16/08/07
  8.   30 billion? You can buy 30 Israels over with that amount 09:06  |  Joe 16/08/07
  9.   #1, Maureen Ann 09:28  |  Cipora Julianna Kohn 16/08/07
  10.   30 billion good business 10:06  |  Dav 16/08/07
  11.   IT WOULD BE CHEAPER TO 10:23  |  Sarah 16/08/07
  12.   Stand with Israel and be blessed! 10:34  |  Lavy 16/08/07
  13.   To #10 Dav 10:40  |  Lavy 16/08/07
  14.   Money for Defense Contractors 10:48  |  Tor 16/08/07
  15.   Why not spend it on food for the poor??? 11:17  |  Benji 16/08/07
  16.   ISRAEL, IRAN 12:17  |  indrajaya 16/08/07
  17.   AMERICAN AID 12:17  |  JON FEIGENBAUM 16/08/07
  18.   US support to Israel... 12:43  |  bashar 16/08/07
  19.   If Israel is such a success story 12:44  |  Chris Linthwaite 16/08/07
  20.   america can help its health system with this 12:53  |  mehmet 16/08/07
  21.   MEHMET USA can help its health system with money given to Moslems 13:07  |  PETER SM 16/08/07
  22.   Reply to 8 13:14  |  David 16/08/07
  23.   AT LEAST ONE FOR EVERY FAMILY (#16 IS A FAKE) 13:19  |  indrajaya 16/08/07
  24.   AT LEAST ONE FOR EVERY FAMILY (#16 IS A FAKE) 13:19  |  indrajaya 16/08/07
  25.   CLINTHWAITE.IF the Arabs were not getting many billions in arms. 13:31  |  PETER SM 16/08/07
  26.   #25 Peter SM 13:49  |  Chris Linthwaite 16/08/07
  27.   Americans must stop their aid to Muslims first 13:59  |  Barry 16/08/07
  28.   peter sm no country gets as much as issies 14:01  |  mehmet 16/08/07
  29.   30 billion well spent 14:08  |  Clickfool 16/08/07
  30.   That is a Good Sign 14:09  |  isratinian 16/08/07
  31.   Turn Huliburton into a Health Care Providor 14:18  |  Health-care-deprived 16/08/07
  32.   War is a American jobs program 14:21  |  Wendy 16/08/07
  33.   MEHMET are you worried about US health care? 14:27  |  PETERSM 16/08/07
  34.   Thank your Wahabi brothers for the $20 billion 15:00  |  Adel 16/08/07
  35.   More Money For Apartheid 15:01  |  Boyd 16/08/07
  36.   Subsidies to Arab Countries 15:02  |  Peter 16/08/07
  37.   Theodor 15:03  |  Bernie 16/08/07
  38.   Creating Jobs in America? Pure Fiction... 15:06  |  Natallie Durson 16/08/07
  39.   SO WORRIED ABOUT HEALTH CARE TO AMERICANS AND MUSLIMS 15:07  |  JON FEIGENBAUM 16/08/07
  40.   Second class treatment - rather join NATO 15:09  |  Tim 16/08/07
  41.   Jon Feigenbaum, Read History 15:11  |  Bernie 16/08/07
  42.   ISREAL WILL CONTINUE TO GET U.S. MILITARY AID 15:17  |  JON FEIGENBAUM 16/08/07
  43.   george orwell`s newspeak 15:18  |  realism 16/08/07
  44.   Israel can stand by itself 15:22  |  Joe 16/08/07
  45.   Very Curious the Anti Isreal crowd here 15:27  |  J.J. Doring 16/08/07
  46.   BERNIE IN MICHIGANISTAN 15:34  |  JON FEIGENBAUM 16/08/07
  47.   Aid to Israel 15:38  |  Rafael Hoevertsz 16/08/07
  48.   #2 Gina, Complaints about Aids to Arab 15:47  |  Kevin 16/08/07
  49.   indrajaya #16 16:00  |  scanadu 16/08/07
  50.   If this (Billions) defense package is a loan 16:13  |  Joseph E . 16/08/07
  51.   How about the other side? 16:23  |  Peter 16/08/07
  52.   doring at#45s 16:25  |  scanadu 16/08/07
  53.   deal with it 16:26  |  edgar 16/08/07
  54.   Response to anyone who says we cannot afford health care 16:33  |  Why 16/08/07
  55.   Any time you have to bring in god, then you have lost 16:34  |  Rational 16/08/07
  56.   Peter 16:37  |  American 16/08/07
  57.   JON FEIGENBAUM 16:41  |  Jonny Cakes. 16/08/07
  58.   NDURSON.When Americans produce something that`s American Jobs 16:43  |  PETERSM 16/08/07
  59.   Joe from Tejas 16:51  |  Tejano 16/08/07
  60.   Sarah #11 16:51  |  Mike 16/08/07
  61.   To American #56 17:10  |  Peter 16/08/07
  62.   $1 Billion of which should be spent on Cluster Bombs to kill 17:13  |  Hani 16/08/07
  63.   Call to Kill Arabs....into submission at least 17:14  |  Hani 16/08/07
  64.   Re23 which is which 17:15  |  Alan the real one 16/08/07
  65.   Proxy War--Valuable Democracy 17:15  |  Eli 16/08/07
  66.   #45 17:35  |  Shana 16/08/07
  67.   Peter 17:37  |  American 16/08/07
  68.   Peter - Muslim Countries 17:38  |  American 16/08/07
  69.   another hand-out to military contractors 17:40  |  Pssd Off American 16/08/07
  70.   Although it is not often reported by the press, 17:40  |  Dav 16/08/07
  71.   Two big mistakes by the US 17:46  |  Tosefta 16/08/07