Israel is preparing to ask the United States for economic aid in the amount of $2.3 billion for the next fiscal year beginning October 1, it was learned today. The formal request will be made by Finance Minister Simha Ehrlich when he is in Washington next week and simultaneously by Deputy Finance Minister Yehezkel Flumin at a meeting here with U.S. Ambassador Samuel Lewis.
The aid package Israel will request consists of $1.5 billion in military security assistance and $800 million for civilian purposes. The request includes a detailed breakdown of Israel’s economic needs for the coming year and reviews the government’s efforts to narrow its balance of payments deficit. The latter was improved by $800 million this year but next year’s improvement is projected at only $200 million due to changing circumstances.
Israel will also ask that $300 million of the civilian aid package be given it in cash rather than credits for purchases in the U.S. The reason given is that it is difficult to supply the necessary documents for purchases in the U.S.
During the current fiscal year Israel received $1.8 billion in U.S. aid, $500 million less than it had requested. The new request for aid states that Israel finds it difficult to balance its budget, partly because of the cut in American aid, and therefore must receive the full $2.3 billion asked for.
Ehrlich will be joined in Washington next week by Amiram Sivan, director general of the Finance Ministry; Dan Halperin, deputy director general; and Ephraim Dovrat, economic advisor. They will attend the International Monetary Fund convention and will meet with Jewish investors.
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.
