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State Dept. Defends Elimination of Israel from Grant Aid Program

April 15, 1959
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William Rountree, Assistant Secretary of State for Near Eastern Affairs, today stuck to his stand for the elimination of Israel from the United States special assistance program for fiscal year 1960 grant aid, in the face of a vigorous pro-Israel stand by leading members of the House Foreign Affairs Committee.

Mr. Rountree, appearing to testify before the House Foreign Affairs Committee, was challenged by Congressmen who insisted that Israel should be retained on the list of nations to receive grant aid. It was pointed out to Mr. Rountree that Israel had been discriminated against through omission in the granting of U. S. military assistance to Near Eastern nations Congressmen held that Israel was at least entitled to inclusion in the economic grant assistance program.

Rep. James G. Fulton, Pennsylvania Republican, was supported by members of both parties, when he spearheaded the defense of Israel’s right to special assistance participation. Rep. Fulton insisted that Israel should continue on the list of nations entitled to grants, even if she receives a minimum of $5, 000, 000. He saw no justification for Israel’s exclusion from such a program.

But Mr. Rountree testified that “Israel itself made significant progress in carrying forward its dynamic internal development program. ” He used this as an argument against continued grant aid for Israel, and spoke of the prospect of improved American relations with the United Arab Republic.

Mr. Rountree praised the United Arab Republic, stating: “The UAR is turning its attention actively to the very real problems of its underdeveloped economy. Progress was made during the year in the normalization of relations between the United States and the United Arab Republic. “

Testifying for the International Cooperation Administration, Near Eastern Office Director Leland Barrows outlined the expenditure plans to cover $80, 000, 000 in grants to Near Eastern nations. Israel was not among the countries to receive a grant. Mr. Barrows said that the USA., in drawing up the grant program, was primarily interested “i areas of special interest” being supported economically. He explained that emphasis was now on aiding Jordan, and that Jordan will receive the largest special assistance grant in the next program.

The ICA director said that, despite intra-Arab strife and “continued strained relations on the Israeli border, and the continuing unsettling effect of the existence of more than half a million Palestine refugees within the total population of only 1, 500, 000, Jordan has still remained an independent state. “

Rear Admiral E. B. Grantham, Jr., director of the Near Eastern and African Division of the Defense Department, told the Committee that the United States is concentrating in building up the Jordanian defense capacity. He revealed that “the Department of Defense, on request of the Jordanian Government, conducted a thorough, on-the-spot survey of her

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