The improvement of Israel’s political situation where Premier Golda Meir is proceeding with the establishment of a new Cabinet that will include Defense Minister Moshe Dayan is seen here as having two immediate major effects. It puts back on course the agreed indirect talks in Washington between Syria and Israel on separation of forces on the Golan Heights. This much was indicated today by Secretary of State Henry A. Kissinger when he told reporters after attending a closed meeting of the House Foreign Affairs Committee that he expected Israeli-Syrian disengagement talks “to start within about two weeks” in Washington.
Kissinger added: “We hope negotiations will be given a chance to progress and the United States will make a very major effort to bring about a separation of forces between Syria and Israel just as we did between Egypt and Israel.” Yesterday State Department sources had indicated that because of the uncertain political situation in Israel, the Israeli-Syrian disengagement talks were in “a state of limbo.” Today, however, when Kissinger was asked about the latest developments in Israel, he replied “We worked very closely with Premier Golda Meir’s (outgoing) Cabinet and we know we will be able to work closely with them in the future.”
The improvement of Israel’s political situation will have a second major effect as well: It will hurry President Nixon’s belated decisions on how to apportion the $2.2 billion Emergency Assistance Program for Israel whose financial situation has been made precarious by the Yom Kippur War costs.
In legislating $2.2 billion to help Israel meet the burdens of its Yom Kippur War costs. Congress stipulated last Dec. that President Nixon could grant up to $1.5 billion outright and provide the $682 million balance in the form of credits. Nixon technically was to have decided in Feb. on how to divide the sum.
The President’s delay has been attributed to Kissinger’s diplomatic undertakings in the Middle East and to the Israeli Cabinet crisis. It was also attributed in part to the need for time to assess the discussions held here in late Feb. between U.S. and Israeli economic and financial experts.
Kissinger is presumed to have discussed the division of the fund at his meeting with Nixon yesterday to report on his latest mission to the Middle East. The President was reported to have been awaiting Kissinger’s recommendations before proceeding with the division of the $2.2 billion.
The financially distressed Israeli government is making no secret that it would like all of the $1.5 billion in grants and the balance as a 20-year loan at three percent annual interest. Those were the terms of the $500 million loan negotiated in 1970 on the basis of the Congressional Act proposed by Sen. Henry M. Jackson (D. Wash.).
Israel also would like $150 million in Public Law 480 funds to purchase agricultural commodities. While this is a sizable dollar increase over the $85 million given Israel last year, the volume of commodities will be approximately the same. The larger sum was said to be due to inflation. Israel also seeks renewal of the usual military credit of $300 million provided annually for the past three years and an extension of the security supporting assistance which has amounted to a grant of $50 million each year since 1972.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
