Israel's military faces
cash flow crisis
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SPECIAL TO WORLD TRIBUNE.COM
Monday, May 21, 2001
TEL AVIV Ñ Israel's military is pressing for an immediate infusion
of up to $1 billion to help finance the nearly eight-month-old war against
the Palestinians.
Defense officials said a shortfall in funding that stems from a failure
by the United States to honor pledges for additional aid has forced the
Israeli military to demand a budget increase. The effort is being led by
Defense Minister Binyamin Ben-Eliezer and Chief of Staff Lt. Gen. Shaul
Mofaz, Middle East Newsline reported.
Mofaz said the military has numerous expenses stemming from the conflict
with the Palestinians. The general told a parliamentary panel this week that
he has not halted buying supplies and weapons despite a shortfall in funds.
A key problem for the military has been the failure by the United States
to honor the pledge of former President Bill Clinton to relay $450 million in defense aid to Israel. The
money was promised to compensate for expenses associated with Israel's withdrawal from Lebanon and for other concessions made by former Prime Minister Ehud Barak during U.S.-sponsored negotiations with Yasser Arafat. The aid was subsequently blocked by Congress.
[See: Barak's political marriage with Clinton is on the rocks]
The Defense Ministry Ñ which received an increase of more than $200
million over the last year Ñ wants up to a $750 million increase over the
next year. Finance Minister Silvan Shalom is prepared to provide about half
of the request.
Israeli police and security forces are pressing for an increase in
funding. Officials said the request is for an increase of about $125
million.
On Sunday, Israel's Cabinet was scheduled to discuss a plan to cut more
than $1 billion to help fund the increase for the military and police. The
casualties would be social welfare programs.
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