U.S. Administration Appears to Have Approved Additional Aid to Israel

The Reagan Administration appears to have approved an additional $1.5 billion in economic aid which Israel had been seeking, but is not yet willing to make a formal announcement. There is speculation the announcement could come after Secretary of State George Shultz arrives in Israel May 9.

In an interview with The Washington Post, before leaving for Bonn yesterday, Shultz said, “I hope we’ll be able to feel very soon that a positive response is called for. There hasn’t been any conclusion yet within the Administration circles, but I think it’s getting close.”

When the question was raised at the State Department today, deputy spokesman Edward Djerejian replied, “We have made clear in the past our support, in principle, for supplemental aid for Israel, Egypt and the West Bank and Gaza. We are in close touch with Congress on this subject. But we have nothing further to announce at this time.”

A MORE POSITIVE STATEMENT

Shultz’ comments yesterday were more positive than previously when he had indicated that the United States still feels Israel has not done enough to solve its economic problems to warrant the $1.5 billion supplemental aid beyond the $3 billion the Administration has approved in military and economic aid, all of its grants, for the 1986 fiscal year.

But Shultz received a letter from Israel Premier Shimon Peres last week answering ten questions raised by the Americans in which Peres stressed that Israel is succeeding in cutting its rate of inflation. In addition, there is strong pressure in Congress to provide the additional aid.

According to reports, Shultz will also propose an additional $8 million to improve the “quality of life” of Palestinians on the West Bank and Gaza. He has long urged the necessity to improve the conditions for the Arabs living in the territories. Shultz will also propose an additional $500 million in supplementary economic aid for Egypt over a two-year period.