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House Votes for Reduced Foreign Aid

March 8, 1976
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The House voted 229-139 Friday for a $5.3 billion omnibus foreign aid appropriations bill which represents a substantial reduction from its earlier authorization measure. The House bill also eliminated funding for the transitional quarter between the end of fiscal 1976 on June 30 and the beginning of fiscal 1977 Oct. 1, thereby complying with the wishes of the Ford Administration.

The House action was expected. Whether the transitional quarter funding-authorized by both the House and Senate earlier at a level of 25 percent of this year’s foreign aid totals-is revived depends largely on the action of the Senate Appropriations subcommittee on foreign aid headed by Sen. Daniel Inouye (D.Hawall). That panel is expected to begin deliberations on the House appropriations measure this week.

Under the authorization measure, Israel was ear-marked for an additional $556 million. The House appropriations bill assigns Israel $1.5 billion in military credits, up to half of which may be forgiven by the President, and $700 million in economic support assistance, $55 million less than the House had authorized.

The House unexpectedly approved, by a vote of 229-139 an amendment by Rep. Bill Alexander (D. Ark.) that would terminate aid to countries that are one year in arrears in payment of an undisputed debt to the United States. Alexander told the House that Israel is “current” and not among the 71 countries that would be affected by his amendment.

However, on the basis of information received from the House committee leadership, Israel is on the list of debtor countries prepared by the U.S. Agency for International Development as of June, 1975. The information, passed to Alexander, was taken to mean that Israel owes nothing in military purchase credits but may be indebted on other obligations. A high Congressional authority told the Jewish Telegraphic Agency that the Alexander Amendment would be killed in a Senate-House conference.

A move by Rep. David Obey (D.Wisc.) to cut $200 million from the $2.2 billion finally adopted for Israel was defeated by a vote of 342-33. Obey claimed the bill as it stood would “not in any way increase the likelihood of peace in the Middle East and will in fact diminish it.” He was supported by Rep. Clement Zablocki (D.Wisc.) who may be chairman of the House International Relations Committee in the next Congress.

Rep. Otto Passman (D.La.) who presented the appropriations bill to the House, noted that it contains $15 million to assist Israel to resettle refugees from the Soviet Union. Last year Congress allocated $50 million for the purpose. Passman said “We hope in the very near future to see the Soviet refugees start pouring out of Russia and we want to have the funds available in the event the program starts back.”

Israel was not the only country affected by the House appropriations measure. Allocations to Egypt were cut by $55 million, bringing its aid ticket to $695 million. Syria was assigned $80 million, $10 million less than the Administration had requested. Jordan’s economic aid was reduced to $72.5 million, a $5 million cut. However, Jordan was earmarked for the full-amount of $75 million in military credits.

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