World Tribune.com
Conference

Israel's military faces
cash flow crisis

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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