The Reagan Administration’s new policy of providing economic and military assistance to Israel and Egypt in the torn of grants rather than loans was described by a State Department official as “a big carrot” program for both countries rather than a “big stick” approach.
The economic and military assistance in the foreig aid budget for fiscal 1985; submitted by President. Reagan yesterday, amounts to $2,250 billion for Israel; $2.170 billion for Egypt; $ll7million for Jordan; $35.3 million for Lebanon; and $20 million for Middle East regional development.
The State Department official would not say whether the foreign aid package includes a proposed $220 million to finance an 8,000-member Jordanian “strike force” to use in emergencies in the Persian Gulf states. The budget will be formally submitted today to Congress. The fiscal year begins October I.
According to Peter McPherson, administrator of the aid program who participated in a press briefing on the subject, the grant approach is “a good deal” for Israel and Egypt because it eases the debt burden of those friends and allies “who badly need military support but cannot afford to divert extremely limited foreign exchange.”
He said this approach would not cost the U.S. too many additional millions of dollars because by the time repayment has been made on the loans, its value will have been diminished by inflation.
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.
