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Israel estimates cost of redeployment at $700 million

Special to World Tribune.com
MIDDLE EAST NEWSLINE
Friday, June 2, 2000

JERUSALEM [MENL] -- Israel's Finance Ministry estimates that the redeployment of the Israeli army to the international border with Lebanon and the defense and security needs of its northern residents will cost $700 million.

In Washington, United States officials have intimated that the U.S. might be willing to raise an earlier pledge of $50 million to between $300 and $400 million.

U.S. sources told the Israeli daily Globes that the administration plans to deduct the amount from its annual $1.98 billion military aid to Israel. In this way, Congress will not need to approve a special aid package as it did for Israel's withdrawal from territory in the West Bank and Gaza Strip.

The source said that Israeli Prime Minister Ehud Barak and U.S. President Bill Clinton were to discuss the issue in Lisbon Thursday.

The Israeli government wants to encourage the 170,000 people living in the north to remain and it has unfrozen $400 million in assets to protect 70 settlements along the newly named confrontation line.

The army estimates that it will cost $250 million to construct new army bases, erect an electric fence along the border and deploy more troops and equipment in the area.

The government's plan to entice the residents to remain -- a third of the residents in the border town of Metulla have said they're leaving -- includes a 25 percent income tax break and a 50 percent tax break on municipal taxes for individuals and businesses. In addition, the government will offer subsidies to Kibbutzim, cooperative farms and tourist attractions.

The rest of the package will be divided between road infrastructure [$75 million], longer school hours [$25 million] and $60 million will be allocated to developing water purification plants.

An additional $60 million has been alotted for the upkeep -- including rent and health insurance -- of 6,000 refugees from south Lebanon, including South Lebanon Army members and their families.

On Tuesday, the United States offered Israel a $50 million grant to allay a portion of the costs.

"We will make available $50 million in existing foreign military assistance for the use through the army corps of engineers to help to provide for security in this part of Israel, in the north of Israel as a result of Israel's withdrawal from Lebanon," U.S. Ambassador to Israel Martin Indyk said.

Friday, June 2, 2000


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