Aid to Israel Under Discussion

Two members of the House charged yesterday that the sale of sophisticated arms to Arab countries by the United States increases Israel’s economic difficulties because Israel then seeks additional arms to meet what it sees as a new threat to its security.

Rep. Millicent Fenwick (R. NJ) told a meeting of the House Foreign Affairs Subcommittee on Europe and the Middle East that if she were an Israeli she would want more arms following the sale by the U.S. last year of five AWACS surveillance planes to Saudi Arabia. Rep. Benjamin Rosenthal (D.NY) declared: “We are going to drive the Israelis into bankruptcy.”

They commented as Morris Draper, Deputy Assistant Secretary of State for Near Eastern and South Asian Affairs, testified before the subcommittee on the Reagan Administration’s proposal to provide Israel with $1.7 billion in foreign aid for the 1983 fiscal year, a $300 million increase over the current year, and $785 million in economic aid.

MAINTAINING ISRAEL’S ‘TECHNICAL EDGE’

Draper said the U.S. aid program was committed to maintaining Israel’s “technical edge” and “qualitative military advantage” in the Middle East. He contended that the U.S. believed Israel was in a stronger position today than it was on the eve of the Yom Kippur War, but implied that this was because Egypt was weaker militarily.

In discussing Israel’s economic problems, Droper noted that Israel’s foreign debt totals $18.2 billion, 40 percent or about $8.8 billion of which is owed to the U.S. He said Israel’s annual debt service to the U.S. is nearing $1 billion. But Droper noted that Israel has always paid its debts to the U.S. “on time.” He said that the Israeli Defense Ministry has cut its budget twice in the last six months and that Defense Minister Ariel Sharon has announced that he does not want to increase Israel’s military strength quantitatively, only qualitatively.

Committee members pressed for more of the aid to Israel to be given in grants. The 1983 allocation provides for $500 million of the military aid to be in grants and the rest in a 30-year loan. Rep. Benjamin Gilman (R. NY) noted that in the current appropriation, Congress raised the military aid grant to $550 million. Rep. Stephen Solarz (D. NY) said that in the previous two years all the economic aid to Israel was a grant but this year the Administration only proposes two-thirds as a grant.

Droper replied that this was an attempt by the Administration to demonstrate to the American taxpayers that Israel and other countries were repaying the aid they received. He indicated that Congress could always increase the amount of the grant.

The State Department official agreed with Solarz that the Administration had promised Israel additional arms after the AWACS were sold to the Saudis. But Draper denied there was any “quid pro quo” between the AWACS sale and the additional $300 million for Israel.

Draper stressed that neither this Administration nor any other would ever withhold aid to Israel as a means of pressuring the Jewish State. He noted that Israel is dependent on the U.S. as the sole source of aid and this places a “special responsibility” on the U.S.

At the same time, he warned Congress against cutting the Administration’s proposed allocation for Israel. He said this would lead to a traumatic situation in Israel which already is confronted by many problems. He said it might also lead to a “miscalculation” by adversaries of the U.S. as to “what we intend to do in the world.”

Draper defended the U.S. policy of selling arms abroad and said that careful consideration is given before any sale is approved. He revealed that the Saudis have bought $44.6 billion in arms from the U.S. in the last seven years, including $12 billion this year and $6 billion in 1983. But he stressed that much of these funds are for construction of bases.

ASSESSES ROLE OF JORDAN

As for Jordan, Draper said that “on the whole we are very pleased with Jordan’s help for the peace process.” He explained that Jordan accepts United Nations Security Council Resolution 242, has kept its borders with Israel “generally peaceful” and has been a moderate voice at Arab forums. Draper admitted that Jordan has not supported the Camp David peace process but expressed confidence that it would join the process in some manner.

The Administration is also asking for a $6.5 million appropriation for the West Bank and Gaza Strip. Gilman noted that this has gone up from $2.5 million in 1981. Draper explained that this was done to demonstrate to the Palestinians that the U.S. “cares about their well-being.” Much of these funds go to private voluntary agencies, Draper said.