Requests that the United States Government resume direct grant aid to Israel, under its special assistance program to countries abroad, were voiced here today at the House Foreign Affairs Committee in testimony on the Administration’s Mutual Security Program. Elimination of Israel from the list of countries receiving such aid was announced by the Administration earlier this month.
Rep. James G Fulton, Pennsylvania Republican, proposed that the U. S. Government match the United Jewish Appeal in earmarking funds for the resettlement of Jewish refugees in Israel. He told the Foreign Affairs Committee that he is preparing legislation providing at least $50,000,000 for refugee relief, to be distributed on the basis of a new formula under which the United States would match funds contributed through foundations like the United Jewish Appeal.
Rep. Edra Kelly, New York Democrat, announced that she would join in supporting the Fulton refugee measure. Rep. Fulton pointed out that Israel is aiding to relieve the world refugee burden, and should be aided by the United States. He outlined a plan similar to the one under which the United States provides an amount to match funds of the United Nations Children’s Fund.
Rep. Fulton said that matching funds would be provided to an organization like the UJA, possibly on a basis of the United States matching every two dollars raised by the UJA with one dollar from the U.S. Government. The same arrangement would be available to private or Arab Government undertaking to relieve Arab refugees. It would pertain to refugees of many lands, and would be linked to American participation in World Refugee Year which will start July 1.
Pointing out that fiscal year 1960 overlaps the 1960 calendar year by six months. Rep. Fulton argued that a provision might be added to the foreign aid bill now before the committee. He said the plan would provide incentive for private contributions, and would help solve the world refugee problem. By adopting his proposal now, Rep. Fulton said, the United States would anticipate participation in the refugee year observance.
AMERICAN JEWISH CONCERN EXPRESSED; ISRAEL’S NEEDS CITED
Rabbi Maurice N. Eisendrath, testifying for the Synagogue Council of America, told the committee of Jewish concern over the elimination of direct grant aid to Israel and urged continuation of such aid. He said that, while aid might flow through other channels, there was nevertheless concern over the elimination of direct aid, because Israel’s plight was becoming more serious, rather than improving.
Israel, he pointed out was at a difficult juncture–forced to spend its own funds on military needs, and receiving no military assistance from the United States. He attributed a portion of Israel’s economic difficulty to Arab hostility. Dr. Eisendrath testified on behalf of the Synagogue Council of America which is the national coordinating agency for the Central Conference of American Rabbis, the Rabbinical Assembly of America, the Rabbinical Council of America, the Union of American Hebrew Congregations, the Union of Orthodox Jewish Congregations of America, and the United Synagogue of America.
Rabbi Eisendrath told the committee of Israel’s foreign exchange deficit, the eventual termination of German reparations, and the maturing of Israel Development Bonds. In his view, Israel’s economy would worsen rather than improve in the near future. In viewing cessation of direct aid to Israel, as announced by the Administration, the rabbi pointed out that Israel should be considered a “bastion of democracy” whose viability was in the national security interest of the United States and the free world.
Robert R. Nathan, economic consultant to the State of Israel, told the committee that the United States, in addition to providing development loans and surplus commodities sales, should continue direct grant aid to Israel under the special assistance program.
Mr. Nathan said that, while Israel has made “phenomenal progress,” the Jewish State is not yet at the “take-off” point economically to permit termination of grant aid. He pointed out that Israel is not yet at the “edge” of self-support. He told the Committee that Israel faces a tremendous problem in the resettlement of immigrants from Eastern Europe, described Israel’s needs as larger than previous requirements, and stressed that grant aid should be continued in support of Israel’s efforts to achieve self-sufficiency.
He pointed out that the Development Loan Fund “had less than a million dollars available for loans at the end of March, against the total screened applications of something like $1,500,000,000. Mr. Nathan added that, even in the unlikely eventuality that the Administration obtains the full $225,000,000 requested for deficiency appropriations for the development loan fund, “this will leave the excess of screened applications over available funds at almost $1,300,000,000.”
Meanwhile, Rep. Seymour Halpern, New York Republican, has protested to the U.S. International Cooperation Administration against the severance of grant aid to Israel, and requested an explanation of the Administration’s excision. He wrote to Leonard J.Saccio, acting ICA director, saying he was “considerably perturbed by this decision because, while the economic growth of Israel has been gratifying, it still is faced with difficult times and an unfavorable balance of payments situation.”
Rep. Halpern added that he was “disturbed in attempting to correlate a cut-off of economic grant assistance to Israel with the continuation of military aid to Saudi Arabia, particularly a time when Israel is beginning to play more of a role as a connecting link between the Atlantic community and the underdeveloped nations. “
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