Ford Threatens to Veto the Foreign Assistance Bill

President Ford’s opposition of financial aid to Israel beyond his own recommendations and the strong feeling in Congress to support Israel’s stated requirements by providing finances to cover the three-month period between the current and new fiscal years, raised questions today of the affects of a threatened Presidential veto of the foreign assistance bill.

Such a veto is seen as involving the future of Premier Yitzhak Rabin’s government and fiscal chaos within many other nations who count on an ongoing American aid program.

The House delayed its vote on the appropriations for foreign aid until next week to take into account the President’s feelings. Despite the veto threat, House and Senate sources indicated a compromise is in the political wind and that Israel and some 50 other countries would receive most of a projected program to include the transitional quarter between July 1 and Sept. 30.

The crescendo over the foreign aid appropriation rose today after Ford posed his veto threat at a meeting with leaders of both parties at the White House today. This meeting followed his letter yesterday to House Speaker Carl Albert (D.Okla.) that “If I am presented with a final appropriation bill that includes additional funds for the transitional quarter I will be forced to exercise my veto.”

ISRAEL HAS SUFFICIENT LEVELS OF AID

Ford’s letter also said that “specifically, in the case of Israel, FY ’76 and ’77 budget requests provide sufficient levels of assistance to meet that nation’s needs.” Recognizing the difficulties a veto would cause, the President said “It could seriously disrupt our efforts to assist our friends and allies in maintaining their security and development growth efforts.”

Sen. Clifford Case (R.NJ), among the 12 Senators and 17 House members who met with the President, declared afterwards, that “Funding for all countries in the transition quarter is consistent with every action the Congress has taken. The Administration’s position is inexplicable in view of its own support for transitional quarter appropriations.”

Secretary of State Henry A. Kissinger had approved the Senatorial formula adding 25 percent to the levels of the 1976 appropriations for the transitional quarter. Later, the White House rejected it. The Senate-House conference on appropriations has disagreed. The House had gone along with the Presidential recommendation of no funds for the transitional quarter while the Senate allocated the funds.

Under the Senate bill about $800 million is added to the 1976 fiscal year bill of which Israel would receive $550 million and Egypt $175 million. Within the bill itself Israel is ticketed in both Houses for $2.2 billion and Egypt about $700 million.

The Ford letter to Albert was made public at the White House after the Jewish Telegraphic Agency asked Presidential news secretary Ron Nessen for a full report on the White House meeting. Nessen said the “carefully prepared” letter formed the “basis” of the President’s remarks and “thus coincides with what the President said this morning.”

REACTIONS TO VETO THREAT

House Minority Leader John Rhodes (R.Ariz.) told newsmen that the President had asserted he would “have no alternative” but a veto if more money is voted for Israel. Sen. Hugh Scott (R. Pa.), the Senate Minority Leader, agreed with Rhodes’ version, saying “The President made it very clear he would veto the bill.” Scott added that he “would hate to see the bill vetoed.”

Sen. Hubert H. Humphrey (D.Minn.), chairman of the foreign aid subcommittee, pointed out that “a Presidential veto could be interpreted by Israel’s neighbors as a weakening of the American commitment to Israel’s security.” He noted further that a veto would “have a serious adverse impact on Israel’s economy.” Humphrey added that “a veto would also jeopardize the other funds in the bill so important to the Sinai agreement” negotiated by Kissinger.

However, Albert, hinting of a compromise, declared that “after all, compromise is part of the legislative process and I am not concerned yet.” He said Congress has to make sure “we don’t appropriate in an area outside of our bailiwick when we have so many problems at home, unemployment and so forth, but we want to make sure Israel has enough to survive.”

SADAT MAY WANT MORE NEXT YEAR

The foreign aid issue, which arose with the Administration’s call on Congress to approve the transfer of six C-130 troop transport planes to Egypt, is still unresolved. Congress has until tomorrow to oppose it.

Congressional suspicion of the extent of the U.S. military program to Egypt has only been partially allayed by the testimony of Kissinger and Undersecretary of State Joseph Sisco that the aircraft deal is the only one that Egyptian President Anwar Sadat will ask from the United States this year. Through press reports and Sadat’s own comments, it has been implicit all along that Sadat will ask Washington to supply Egypt with a broad assortment of weapons in 1977.

Sisco said as much yesterday when he told a House International Relations Committee he would not be surprised if Sadat would request more military equipment next year. Congressmen questioning Sisco referred to assertions in Cairo and Washington that Sadat, is seeking fighter planes, missiles and other “defensive” weapons from the U.S.