The US Congress understands Israel’s positive economic potential in the medium and long term. This assessment will carry great weight in Congress’s willingness to approve US aid to Israel, Israeli sources in Washington told “Globes” last night, following the Israeli delegation’s meeting with members of Congress.
The delegation was composed of Ministry of Finance director general Ohad Marani, Minister of Congressional Affairs at the Israel Embassy in Washington Aviv Shiron, and Minister for Economic Affairs at the Israel Embassy in Washington Boaz Raday. They met with House Foreign Operations Subcommittee of the Committee on Appropriations chair Jim Colby (R. Arizona); Nita M. Lowey (D. NY), the leader of the Democratic minority on the subcommittee; and a group of Congressional aides from both parties.
The Foreign Operations Subcommittee is known to be a crucible for foreign aid legislation. The subcommittee composes the first draft of legislation, which serves as the basis for the debate in the Appropriations Committee and on the House floor.
Israeli sources said that most of the members were well aware of Israel’s current economic problems, which were affecting its high-tech industry. The legislators’ continued confidence in Israel’s economy rests on reports by the World Bank and the International Monetary Fund, and the decision by rating agencies not to lower Israel’s credit rating.
The sources said, “Many House and Senate members understand that aid to Israel is not betting on a bad horse. Israel received special aid packages in 1985 and 1992. In both cases the aid proved worthwhile. The 1985 package helped eliminate hyperinflation, and the 1992 package helped absorb immigrants from the former Soviet Union.
”In both cases, Israel was able to use the special aid effectively to repair its economy. Many members of Congressman learned that lesson,” the sources said.
The House members and Congressional aides at the meetings yesterday were inclined to grant Israel “something”, i.e. some special aid, although there is no guarantee Israel will receive everything it asked for.
Shiron said that if the administration endorses the Israeli request, either in full or in part, Congress will also support it. The delegation heard assessments that the administrations would not have invited the delegation for a talk in the White House, unless it intended to grant Israel’s request.
Other sources said that the issue of the administration’s rumored future conditions for the aid was not raised in the talks with Congress. Reports have said that the administration plans to demand political conditions, i.e. deduction of investments in the territories from the loan guarantees, and economic conditions, such as an official US demand to reduce the budget deficit, cut the budget, and lower taxes.
The administration is still preserving its silence on Israel’s special aid request.
Published by Globes [online] - www.globes.co.il - on January 9, 2003