Report Ford Continues to Oppose Transitional Aid to Israel

Reports that President Ford appeared agreeable to a compromise on additional military assistance funding for Israel to cover the transitional quarter between fiscal years 1976 and 1977, seemed to have been quashed today. White House sources said that the President has not changed his position against foreign aid funding for Israel for the three-month period July 1-Sept. 30 and, in addition, the Republican Congressional leadership indicated he may even veto the authorization legislation because he feels it is too restrictive on him.

Ford had previously said he would veto an appropriations measure that included funds for Israel and other countries, among them Egypt. But today, Rep. Robert Michel (R.III.) told reporters that the President had “grave concerns” about the authorization measure which sets the policy on foreign aid.

Michel was one of the Republican Congressional leaders who met with Ford at the White House this morning. Talking to newsmen there after the meeting, he said that the President had real concern about both the authorization and appropriations measures. According to Michel, Ford felt that the authorization legislation limited the President’s authority on matters in which he feels he has the prerogative rather than the Congress.

OBJECTIONAL PROVISIONS CITED

Among the provisions of the authorization legislation to which Ford objects, it is understood, are a Congressional veto on military sales either by the U.S. government or American companies that exceed $25 million: Congressional veto of transfers of American weapons by a foreign power to a third country; and the anti-discrimination provisions that would cut off U.S. aid to any country that discriminates against Americans on the basis of race, religion, sex or national origin. The latter provision was understood to be aimed primarily at the Arab countries.

According to Michel, the overall judgement. of the Republican Congressional leadership is that the President has good grounds to veto the authorization measure. The Congressman said that the removal of the limitations on Ford’s prerogatives ought to be taken as a preface to any appropriations bill on foreign aid. When asked if that was the President’s feeling, Michel replied that it was the general consensus of the Republican leadership. He added that the President did not affirmatively commit himself one way or the other, except that he had grave concerns.

When Ford, apparently, suggested to the Republican leadership that the extension of powers to Congress could be corrected in the House-Senate conference on the legislation, the advice of the leadership was, according to Michel, that it would be better to veto the bill and allow the whole foreign aid process to be worked out in the full committees of both houses.

SENATE, HOUSE VOTES DUE

Capitol sources that had molded the foreign aid authorization bill which provided for increased Congressional authority over military programming, felt they had the agreement of Administration authorities for the provisions to which the Republican leadership apparently now objects. The Senate and House are to vote tomorrow on the authorization measure which has cleared the Senate-House conference committee and includes provisions to which some Republicans are now objecting.

Since fiscal 1976 ends in two months, a veto by the President would probably cause a situation where no bill for fiscal 1976 may be prepared before the year is over. What would happen in such circumstances to the commitments made to foreign countries on the basis of anticipated assistance–Israel, for example, expecting $2.2 billion for-fiscal 1976 and additional funding for the transitional quarter–is problematical.

White House sources told the Jewish Telegraphic Agency today that Ford’s feelings on the transitional quarter remain the same and that he has not changed his position against the funding. This appeared to clash with the impression conveyed by Sen. Clifford Case (R.NJ) who had met privately with the President at the White House Saturday.

According to Case, the ranking Republican member of the Senate Foreign Relations Committee. Ford was amenable to a compromise on transitional quarter fundings under which Israel would receive $375 million to meet its defense needs but all other countries would receive no extra assistance. The compromise was said to have been contained in a study made for Case by his staff. The $375 million would have been in the form of U.S. loan guarantees and would not come directly from the Treasury, thus conforming to Ford’s view that his budget cannot be increased.