Officials said the aid package would come into effect during fiscal
2009, which begins in October 2008. Under the formula, Israel would receive
increments of $150 million per year, which would boost military aid to $3.1
billion in 2011.
"We have an exceptionally heavy defense burden," Bank of Israel governor
Stanley Fischer said.
Officials said the United States would enable Israel to use 26.3 percent
of the military assistance for purchases within the Jewish state. They said
this proportion -- similar to current U.S. military aid -- would bolster
Israel's
defense industry, which has become increasingly dependent on the American
market.
"The aid agreement with the U.S. is an important and significant
component for Israel, and proves once again the depth of the relationship
between the two countries and the United States' commitment to Israel's
security, and to preserving its qualitative advantage over other countries
in the Middle East," Israeli Prime Minister Ehud Olmert said.
Officials said the $30 billion aid package was meant to offset a
proposed U.S. weapons sale of at least $20 billion to Saudi Arabia. Under
the administration plan, Saudi Arabia would receive advanced air munitions,
air and missile defense systems and combat aircraft systems.
The administration also intends to provide $13 billion to Egypt over the
next decade and $20 billion in arms sales to five Gulf Cooperation Council
states. Congress would be presented with the entire Middle East package in
September.
Israel and the United States plan to discuss future arms deals financed
by the increase in military aid. In October, Burns would head a U.S.
strategic dialogue with Israel that would focus on threats by Iran and
Syria.
