Aid Cut Still Possible for Israel

Although Latin American countries will be exempt from the 10 percent reduction in foreign assistance announced by President Nixon on Aug. 15, the State Department said today no decision has yet been made regarding the remaining countries which receive American economic aid. Israel thus far is not affected by the reduction since it is not receiving the type of aid which the President said must be reduced.

However, Israel is included in legislation now pending in the Congress to receive on as yet unspecified amount in the current fiscal year which began July 1. Whether the new legislation funds will be cut too, is not yet decided. Israel is known to have requested $200 million in aid. The announcement of exemption for Latin America was made known yesterday in Panama by Nathaniel Samuels, Undersecretary of State for Economic Affairs.

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