US aid for Israel was supposed to total $2.7 billion: $2.1 billion in military and $600 million in civilian aid. However, US federal budget cuts has reduced that amount by $17.5 million: $13.65 million in military and $3.9 million in civilian aid.
There is no connection between the cut in US civilian and military aid in the 2003 fiscal year and Israel’s request for $12 billion in special aid and loan guarantees. An Israeli delegation will arrive in Washington Wednesday to discuss the special aid package.
The 0.65% cut in US aid to Israel is part of a 0.65% across-the-board cut in the federal budget, except for defense. A joint Senate-House of Representatives committee decided on the budget cut last week.
Congress was due to pass the federal budget on October 1, 2002, the start of the 2003 fiscal year, but disputes between Republicans and Democrats over budget priorities caused a delay.
The budget bill now awaits the president’s signature. It includes a number of items that express Congress’s dissatisfaction with the Palestinian Authority (PA) and the UN’s actions in the territories. AIPAC (American Israel Public Action Committee) lobbied pro-Israeli members of Congress to insert the items.
The budget bill stipulates that US aid cannot be used to help establish a Palestinian state, unless the Department of State determines that the PA has carried certain reform measures, including leadership changes and adopting a constitution.
Another item stipulates that supervision of US aid to the PA through UNRWA (United Nations Relief and Works Agency for Palestine Refugees in the Near East) must be tightened. This clause reflects widespread opinion in the US that UNRWA looks the other way, allowing Palestinian terrorist organizations to operate under the cover of the UN.
An Israeli delegation scheduled visit to Washington last week to discuss the special aid package was postponed. Its members include Prime Minister's Bureau director Adv. Dov Weissglass, Ministry of Finance director general Ohad Marani, and Accountant General Nir Gilad. Ministry of Defense director general Amos Yaron will probably not participate.
Economic sources said this round of talks would be “the last or next-to-last round” of talks on the Israeli aid request.
Published by Globes [online] - www.globes.co.il - on February 17, 2003