Israel Will Get No Grant-in-aid This Year, State Dept. Reports to Congress

The State Department has officially informed Congress that for the first time in a decade American grant-in-aid will not be allocated to Israel because of her “impressive economic development”.

The House Foreign Affairs Committee made known this development this weekend in its formal report to the full Congress on the foreign aid legislation now under consideration. Last year the administration sought similarly to deny grant-in-aid to Israel, but administration officials surrendered to Congressional protests and reinstated Israel’ in the grant program. Israel was granted $7,500,000 as an immediate result of the furor over its omission from the countries receiving grant-in-aid.

In its report the Committee on Foreign Affairs said: “The Committee has been informed that aid to Israel will in the future stress loans and food for peace. Under difficult circumstances, Israel has achieved impressive economic development so that for the first time in 10 years, grant assistance has not been programmed for Israel. The Committee is of the opinion that Israel should continue to receive development loans and other forms of economic aid at levels high enough to insure continued development”.

The Committee stressed that “should circumstances arise in which Israel again would be in need of grant aid, the committee believes that the Administration should deal sympathetically with any such request. It should be stressed that Israel has struggled for stability at great odds in a difficult area”.

The Committee pointed out that “the lack of peace and economic relations with her neighbors has led Israel to make large expenditures for security and survival. Israel has never received grant military aid or defense support under the Mutual Security Program. Under these circumstances, the Committee continues to be concerned about Israel’s economic progress”.