Rabin: U.S. Agrees to Give Israel $1.8 Billion in Military Aid for F/y 1986; No Decision on Economic

Israeli Defense Minister Yitzhak Rabin indicated today that the Reagan Administration has agreed to provide Israel with $1.8 billion in military aid for the 1986 fiscal year, a $400 million increase over this year, but has made no decision on economic aid.

Emerging from a 30-minute meeting with President Reagan at the White House, Rabin would not say directly if the President had approved this figure. But he said while the increase “was not exactly what we wanted,” the total amount will be about $1.8 billion. Israel had asked for $2.1 billion in military aid. The White House confirmed the $1.8 billion sum.

SAYS REAGAN HAS A ‘POSITIVE ATTITUDE’

Rabin said that while he believed no decision has been made on economic aid, the President has a “positive attitude” toward helping Israel in its present economic difficulties. “I’m optimistic about what will be done by the U.S. government in support of our efforts, serious efforts in Israel, to bring about a recovery of our economy,” he said.

The Defense Minister said he briefed Reagan on Israel’s accomplishments in the first step of its economic recovery program which has already reduced inflation and on the next step which calls for deep cuts in government subsidies and $1.1 billion in cuts in government operations, including “to my sorrow”, the defense budget. “Israel for the sake of the recovery of its economy is going to take security risks, and a real one,” Rabin said.

Rabin, who met with Defense Secretary Caspar Weinberger and Secretary of State George Shultz on Monday and with the Joint Chiefs of Staff and Senate Foreign Relations Committee yesterday, leaves for New York after holding a press conference this afternoon.

He told reporters that he thanked Reagan for all he had done for Israel during his first term and stressed that the cooperation between the two countries would continue.

OPPOSES ROLE FOR USSR IN MIDEAST PEACE PROCESS

Rabin said that in all of his discussions here he stressed Israel’s opposition to bringing the Soviet Union into the Middle East peace process. “The last II years have proved that if there is to be any move toward peace in the region it must be done with the U.S. leading the process, with the cooperation of Israel and at least one Arab country.”

He added the warning that “Whoever will bring the Soviets to be a party to the peace process in the region, there will be no peace and no process.”

Rabin said that he understood that the U.S. and the Soviet Union had issues to discuss among themselves as superpowers, including the Middle East. This was a reference to the recent announcement that the U.S. and USSR plan to have talks about the region. But Rabin said the discussions should not include the peace process.

He reiterated Israel’s opposition to an international conference under United Nations auspices with the Soviet Union participating, as Moscow has urged. He said he believes the Administration shares this view. Rabin said that in briefing Reagan about Israel’s decision to redeploy its troops in Lebanon, he stressed that “Israel is not giving up fighting terrorism. But we have decided to do it in a different way, from different places, by different methods.”

He said that “We have no illusions” that once Israel leaves Lebanon “terrorism will be ended,” because it will continue from the two factions of the Palestine Liberation Organization influenced by the Soviet Union and Syria and the Shiite Moslems in south Lebanon who are under the influence of Iran. “Terrorism is there and has to be coped with,” he said.

Rabin said the Israel government has three priorities. The first is to strengthen its economy. He noted that Arab governments will not be persuaded to negotiate with a weak Israel. The second is to find a solution to Israel’s involvement in Lebanon and the third is to “warm up relations between Egypt and Israel,” Rabin said.

He said Israel “paid heavily” for its peace with Egypt and “expected it to be more than just no war.” He added that Israel would like to see implemented the more than 50 agreements for normalization it has signed with Egypt.