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NEW FALL & WINTER
YARNSIII
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.
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Secretary of State George Shultz, right, with Foreign Minister Shimon
Peres: A soft spot for Israel.
here, we've developed a proc-
ess of thinking out the assist-
ance programs and talking
them through. This has led to
a better process with Con-
gress because we arrive at a
number for aid [in advance].
It then becomes the Presi-
dent's budget, and the Is-
raelis help us get it. If some-
one in Congress tries to break
ranks and get more aid for
Israel, the Israelis essential-
ly say, "No, this is what we've
agreed on! They help keep it
in the right perspective!'
Three years ago, Shultz was
also the prime backer in the
Administration of a $1.5 bil-
lion dollar emergency eco-
nomic aid package for Israel.
The money was linked to cer-
tain Israeli economic reforms.
The strategy paid off: Israel's
inflation has been brought
under control and its balance
of trade and its foreign cur-
rency reserves have both im-
proved.
In fact, Israeli officials
praise Shultz as the unsung
hero of Israel's economic re-
covery.
Shultz has also been in-
fluential in promoting closer
U.S. military and strategic
ties with Israel. He pushed
hard, for instance, to estab-
lish the joint U.S.-Israeli com-
mittee on military-political
cooperation. As a result,
things are happening today in
that arena that would have
been considered unheard of
only a few years ago.
Shultz has also tried to "in-
stitutionalize" some of these
changes in flit- U.S.-Israeli
relationship tc; .s.sure they
survive his dei. rture from
office.
Asked whether these bila-
teral forums on economic and
political-military issues
would survive his tenure,
Shultz replied that once
things are "embedded" in the
system and they 'work," they
tend to get "carried on!'
But Shultz, like many
strong supporters of Israel,
.
-
was deeply disappointed by
the Pollard spy scandal.
"That's a very painful thing,"
he said.
Shultz was also strongly op-
posed to Israel's role in the
Iran-contra arms affair.
"They weren't dealing with
me," he said, referring to
Israeli officials involved in
the National Security Coun-
cil secret transactions. "I
wasn't that aware of what
Israel was doing."
Yet, he has tried to limit the
affair's impact on the overall
U.S.-Israeli relationship.
lbward that end, he said, he
has been working very closely
with the American Jewish
community.
"As Secretary of State," he
said, "I have gotten to know
a lot of people in Jewish
organizations that are in-
terested in Israel. We've met
a lot and I've formed a lot of
good friendships, even though
there are many issues that we
have argued about!'
For instance, said Shultz, he
has been meeting with
several Jewish leaders about
the Administration's recently
announced plans to sell more
weapons to Saudi Arabia. The
discussions, he said, "even
when we disagreed, were con-
ducted in an atmosphere of
personal warmth and friend-
ship."
Shultz has also developed
close ties with some Israeli
leaders. One of his best Israeli
friends is Moshe Arens, who
recently resigned from Is-
raeli's cabinet after it voted to
cancel the Lavi jet program.
The two men became close
when Arens was Israeli's am-
bassador to the U.S.
Shultz insisted that the U.S.
was still determined to ad-
vance the Arab Lsraeli peace
process, although he conced-
ed that there currently
an impasse.
"The big overriding issue
that we know we have to
struggle with is peace," he
said.
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