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U.S. Economic Assistance to Israel to Be Cut Drastically

April 13, 1954
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State Department sources unofficially confirmed reports today that Israel’s economic and technical assistance allocations this year will be substantially reduced. They refused to comment on specific reports that aid to Israel will be drastically cut from about 70 million dollars approved last year to somewhere between 45 and 50 millions this year.

According to an Associated Press report, the total for the Middle East for the new year will be about $165, 000, 000, of which Iran will receive $74,000, 000. The remainder would be divided equally between Israel and the Arab States, according to recommendations of the State Department and the Foreign Operations Administration.

The recommendations were presumably made last week in a secret session by Executive Branch officials to Congressional experts on foreign affairs. The experts were said to have replied to criticism of the “imbalance” in aid given Israel on the one hand and the Arab States on the other by saying it could not be avoided because Israel was prompt in stating its needs and the Arab states showed indecision on the help they wanted.

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