U.S. Wants Israel to Participate in Programs Providing Aid to Third World Countries

The United States wants Israel to participate in programs providing aid to Third World countries, especially in Africa, according to Kenneth Bialkin, chairman of the Conference of Presidents of Major American Jewish Organizations.

Bialkin said this was stressed by M. Peter McPherson, Administrator of the Agency for International Development (AID) during a briefing by Reagan Administration officials with some 100 Jewish leaders this week at the old Executive Office Building adjacent to the White House. McPherson is encouraging Israel to bid on various AID projects.

In addition to McPherson, the Presidents Conference was briefed by Allen Wallis, Undersecretary of State for Economic Affairs; Elliott Abrams, Assistant Secretary of State for Human Rights and Humanitarian Affairs; Donald Regan, the White House Chief of Staff; James Covey, the National Security Council’s Middle East director; and Marshall Breger, President Reagan’s assistant for liaison with the Jewish community.

‘A GOOD EXCHANGE OF VIEWS’

Bialkin said that the meeting provided for “a good exchange of views” and the Presidents Conference hopes to have a similar session with Congressional leaders.

Wallis reiterated the Administration’s view that Israel will have to take even more stringent economic measures before the Administration decides to provide the $800 million Israel has requested as a supplement to the $1.2 billion in economic aid it is receiving this year, according to sources who attended the meeting. Wallis said Israel would also receive $1.2 billion in the 1986 fiscal year.

While Wallis stressed that the U.S. is not telling Israel what to do, he said there was a need for further budget cuts and to reduce the number of government employes and shift them into “productive jobs.” He also said the Shekel was over-valued and that it should be pegged against a basket of foreign currencies, including the U.S. Dollar and European currencies. But, Wallis added, the U.S. believes Israel should not cut its defense budget.

Covey stressed that President Reagan’s September 1, 1982 Middle East peace initiative was designed to get an Arab negotiator to the table with Israel.

In discussing Soviet Jewry, Abrams urged the Jewish community not to despair about the present worsening situation of Jews in the Soviet Union. He stressed that the community should remain united because he predicted a Soviet effort to divide it.

Regan discussed domestic issues. Bialkin said the former Secretary of the Treasury denied that the Administration’s tax reform proposals which would limit deductions for charity, would affect large gifts. But he said he would be interested to see any study that demonstrated a different view.