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Israeli Minister
Discusses Aid
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Washington (JTA) — In a
series of meetings with Clin-
ton administration officials
and members of Congress
this week, Israeli Finance
Minister Avraham Shohat
discussed the touchy issues
of foreign aid and U.S. loan
guarantees to Israel.
Mr. Shohat's visit is being
played out against a
backdrop of questions rela-
ting to U.S. foreign aid prac-
tices. And the meetings
came at a time when Israel
is about to receive the first
installment of the once-
controversial package of
U.S. loan guarantees for $10
billion.
The finance minister met
with a wide variety of
American officials, in-
cluding Treasury Secretary
Lloyd Bentsen, Commerce
Secretary Ron Brown, Trade
Representative Mickey Kan-
tor and Deputy Secretary of
State Clifton Wharton.
In addition, he met with
members of Congress, in-
cluding Sen. Patrick Leahy,
D-Vt., chairman of the
Senate Appropriations sub-
committee on foreign opera-
tions, which appropriates
foreign aid money.
The Israeli Embassy here
had little to say about the
meetings. An embassy
spokesperson said Mr.
Shohat emerged from the
meetings feeling the ad-
ministration "understood
the importance of foreign aid
to Israel, especially in light
of the peace process."
While Secretary of State
Warren Christopher this
week reiterated the Clinton
administration's position
that U.S. aid to Israel should
be maintained for next year
at its current level of $3
billion annually, he would
not say how much aid the
administration would re-
quest from Congress in
future years.
At a news conference in-
. viting the various Middle
East parties to return to the
peace talks April 20, Mr.
Christopher said it is hoped
that progress in both the
peace talks and economic
reform in these countries
will lessen the need for
American aid.
The Israeli Embassy
spokesperson said the Israeli
government has worked out
over the past few months
how it will use the first in-
stallment of loan guar-
antees.
The guarantees, which
sparked a feud between the
Bush administration and the
Likud government of Yit-
zhak Shamir, are to be given
to Israel in installments of
$2 billion annually over the
next five years.
Israel will use $600 mill-
ion for "infrastructure," in-
cluding construction and
utilities, and the rest will be
split between reserves for
foreign currency and en-
couraging business struc-
tures through the Bank of
Israel, the spokesperson
said.
Mr. Shohat's visit comes at
a time when American offi-
cials are less likely to look
favorably on a continuation
of the current system of
granting U.S. foreign aid.
In a political climate
where Americans are being
asked to make financial
sacrifices, foreign aid is an
unpopular topic.
In over two hours of
testimony to the House Ap-
propriations subcommittee
on foreign operations, Assis-
Progress in peace
talks will lessen
the need for
American aid.
tant Secretary of State Ed-
ward Djerejian was grilled,
about U.S. foreign aid by the
panel's chairman, Rep.
David Obey, D-Wis.
Mr. Obey pressed Mr.
Djerejian on the issue of con-
tinuing aid to Israel and
Egypt at their current
levels, observing that the
countries had economic
problems that were not be-
ing quickly resolved.
While Mr. Djerejian spoke
positively about Israel's
efforts to improve its econo-
my, he did say that a
"serious question" existed
about "moving up the pace
of economic reforms in
Israel."
"We will be engaged on
this very actively," he add-
ed.
Neither we nor any genera-
tion that preceded us can
claim credit for God's grace
in choosing our nation; only
the Patriachs, as is explain-
ed in the Torah.
—Nahman Krochmal