Weissglass: US aid likely to be faster than usual

Marani: Americans have not placed restrictions on aid so far becuase we've made all the right moves.

“Approval of the US loan guarantees is likely to be faster than usual, thanks to the administration’s great understanding of Israel’s economic distress caused by the security situation and war against terrorism,” Prime Minister's Bureau director Dov Weissglass told “Globes” today.

“The negotiations with the US about Israel’s aid request have opened well. We have no reason not to be optimistic,” Ministry of Finance director general Ohad Marani told “Globes” at the end of the first round of talks between the Israeli delegation and top US officials at the White House yesterday.

The Israeli delegation presented Israel’s request for $4 billion in direct aid and $8 billion in loan guarantees to the Bush administration officials during the three-hour meeting.

The parties agreed to hold another round of talks in Jerusalem or Washington soon.

The parties are holding further talks today. Sources in Washington believe there will not be any response from the US administration before April.

In addition to Marani and Weissglass, the other members of the delegation were Ministry of Defense director general Amos Yaron, Israel Ambassador to the US Daniel Ayalon and Minister for Economic Affairs at the Israel Embassy in Washington Boaz Raday.

Marani described the talks as “professional, very good and thorough.” He believes the Americans were favorably impressed by Israel’s efforts in the face of terrorism and the global economic slowdown, and they believe Israel would carry out the right economic measures. Marani said, “The Americans understand budget policy considerations, the budget cuts and our commitment to meeting the deficit targets.”

Marani said the Americans asked the Israelis to explain the figures of $4 billion in direct aid and $8 billion in loan guarantees. “Based on their reactions, the Americans grasp our dire situation,” he said.

“I am unaware of any US demands for Israel to make economic measures as a condition for granting the loan guarantees,” said Marani. “If the Americans intend to raise these issues, they can do so in the follow-on talks.”

Recent reports claim that the US conditioned the loan guarantees on Israel taking monetary and fiscal measures, including cutting taxes and the interest rate. Marani claims no such conditions were raised in yesterday’s talks. He added that the Israeli delegation laid out the proposed uses for the aid.

Commenting on Monday’s terrorist attack in Tel Aviv, Marani said the attack, “will further underscore for the US terrorism’s great cost in human life and economic damage.”

Yaron told “Globes” last night that no discussion was held about conditioning the aid and guarantees on an Israeli commitment not to use the money beyond the Green Line. The aid package will probably also not be conditioned on an Israel not launching a counterstrike in the event of an Iraqi attack on Israel.

Yaron said, “I believe we successfully explained ourselves.”

US Department of State spokesman Richard Boucher declined to comment about the talks, referring all questions on the subject “to the Israelis.” However, in response to a question if the US would meet the Israeli request in full, he said, “We always try to help our friends and allies to the best of our ability.”

Published by Globes [online] - www.globes.co.il - on January 7, 2003

Twitter Facebook Linkedin RSS Newsletters âìåáñ Israel Business Conference 2018