Israeli Official Urges That Congress Not Reduce Aid to Israel

A senior member of an Israeli Knesset committee last night urged that Congress not cut back on proposed foreign assistance programs to Israel.

Speaking in the context of what he said were also American interests in the Middle East, Ehud Olmert asserted that he hoped Israel will “continue to receive the same assistance and support from the United States” as proposed for the 1986 fiscal year.

Olmert of Herut and the senior ranking member of the Knesset Foreign Relations and Security Committee, addressed some 100 Jewish leaders at a forum sponsored by the Jewish Community Relations Council of New York.

Also speaking at the forum on U.S.-Israel relations were Reps. David Obey (D. Wis.), chairman of the Foreign Operations Subcommittee of the House Appropriations Committee, and Robert Mrazek (D. NY), a subcommittee member.

The forum took place while reports circulated in Washington regarding proposed cuts in Israel’s assistance by the 99th Congress, which returned yesterday after a recess. The prospect is that Israel’s assistance programs may be cut by as much as 4.3 percent to conform to the proposals of the Gramm-Rudman-Hollings budget cuts. (See separate story.)

Mrazek said that he was informed last night through State Department officials of Israel’s tentative decision to return $51 million of its $1.2 billion in U.S. economic aid for fiscal 1986, “as demonstration of its recognition of economic cuts in the U.S.”

Israel received its $1.2 billion in fiscal 1986 economic aid at the beginning of the fiscal year under a practice that enables it to benefit from the interest. That left the Administration $51 million short of meeting the requirements of the Gramm-Rudman-Hollings act passed after the money was distributed.

Obey, meanwhile, in an intensely partisan address, lambasted the Gramm-Rudman-Hollings proposals as too broad, and pointed out that while cuts will have to be made in proposed foreign assistance and social spending programs, the U.S. military budget remained exempt.

He urged that those concerned with increased aid for Israel and other economic issues will have to lobby Congress and the White House for tax increases to bring added revenues to government.

According to Obey, if “you want to see us provide a decent level of support for Israel,” there is a need for lobbying for overall programs, and a political compromise on the proposed cuts. He added that he doubted Israel will be exempt from the budget cuts.

CITES GRAVE CHALLENGES FACING ISRAEL

Olmert, in his remarks, said Israel is facing two grave challenges at the moment. The first is the continuing war against terrorism, and the second is that posed by the Syrian military buildup to the north.

Regarding terrorism, Olmert warned that it “cannot be the exclusive responsibility of Israel ” to battle terrorism. He called on the U.S. to join with Israel to confront terrorism.

He also strongly suggested that Libya, accused by Israel and the U.S. of supporting the terrorist group allegedly responsible for the attacks at the airport counters in Rome and Vienna last month, “will not be able to escape the punishment it deserves. “He did not elaborate, but said Israel “will act against Libya.”

As for Syria, the Israeli official said there “can be no doubt of the intentions of Syria and the target of its military preparations.” He warned that the war on terrorism and Syrian activities in the region were more than immediate threats to Israel.

“These…are threatening the interests that are important to other countries, particularly the United States, ” Olmert said. In this context, he said cutbacks in Israel’s military assistance programs, in view of the Syrian military buildup, would have a direct effect on U.S. interests in the region.