The House Financial Aid Committee, for the first time, has approved providing a portion of the loan money to Israel for military aid at a reduced rate of interest.
An amendment, steered through the committee by Rep. Stephen Solarz (D. N. Y.), would lend Israel $50 million of the foreign military aid for fiscal year 1982, beginning Oct. 1, on “concessional terms” at 3 percent interest. The remainder of the $900 million loan for military aid would be provided at the rate of 14 percent.
In addition to the loan, the committee voted to grant Israel $500 million in military aid and $785 million in economic assistance. Solarz said that the committee’s actions “represent Congressional recognition of Israel’s extraordinary contribution to the peace process and the heavy financial burden it has assumed by withdrawal from the oil fields in Sinai and the redeployment of its forces in the Negev.”
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