The U.S. has undertaken to conclude the proposed negotiations on a free trade area with Israel within a few months. Cabinet sources said today after Premier Yitzhak Shamir briefed the ministers on his talks in Washington last week.
Shamir dwelt at length on the economic aspects of his visit. He said Washington’s agreement to a $1.4 billion military aid grant for fiscal year 1985 need not necessarily be the last word. It had been understood that if Israel needed more, more would be available. Israel’s original request was for $1.7 billion. The U.S. also indicated it would favorably consider upping the military aid total in the years beyond 1985, according to Shamir’s briefing.
The Cabinet was told the free trade area, once operative, could increase Israeli exports to the U.S. by as much as 30 percent. In addition, there were understandings reached whereby the U.S. would purchase goods and services for its armed forces in Israel.
On the proposed prepositioning of U.S. military supplies in Israel, Cabinet sources said that here too the intention was to negotiate expeditiously. They indicated that if favorable decisions were taken regarding medical prepositioning, work might begin on major medical facilities here within months.
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