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Friday, July 31, 2009

Israeli government braces for cuts in military aid as U.S. economy worsens

TEL AVIV — Israel's government has learned that the U.S. economy continues to worsen and is bracing for the prospect that President Barack Obama would significantly cut military aid.   

"We are receiving reports that the American economy is getting worse and worse, and they're having trouble paying for basic programs," an official said. "This could quickly be used as a stick against foreign aid."

Officials said the Defense Ministry has held several meetings on the issue during 2009, the latest of which took place on July 21. They said the ministry, in consultation with the military, was examining the damage of any U.S. aid cutoff to the Jewish state.


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"It's a very real possibility," an official said.

Officials said the ministry envisions several scenarios in which the Obama administration cuts U.S. military aid to Israel. They said the most likely option was that the Democratic-controlled Congress would ask Israel to agree to a significant cut to help the U.S. economy.

This scenario was expected to take place as early as October 2009, following the summer recess by Congress. Officials said members of the House and Senate could return from their districts armed with a mandate to cut U.S. foreign aid.

In 2009, the administration imposed restrictions on Israel's use of U.S. military aid. The Defense Department informed Israel that U.S. military aid must be used only for weapons and related systems rather than non-combat equipment. Over the last few years, the Israeli military has used U.S. aid to purchase uniforms and food.

Officials said Congress was also expected to cut U.S. military aid to other allies in the Middle East, with the possible exception of Jordan. Egypt receives $1.3 billion in annual U.S. military aid, the second largest recipient of Washington.

Another scenario was that the administration presses for a U.S. aid cut to pressure the Jewish state to end its presence in the West Bank and establish a Palestinian state by 2012. Officials said the administration has already delayed several Israeli weapons requests submitted over the last year.

"There are signals that this is already happening," an official said. "Everything that Israel is asking for, even approved by Congress, is being delayed."

The Israeli Defense Ministry and military have already been examining substitutes for U.S. weapons and equipment, officials said. They said the ministry has determined that most of the U.S. equipment could be replaced, albeit with difficulty, by such suppliers as France and Russia.

"We turned down these offers because of our relationship with the United States," an official told the Jerusalem Post. "If that relationship changes we could always renew the partnership with France and other countries."



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