US mulls extra aid to Israel in return for disengagement

The aid will take the form of grants for developing the Negev and for combating terror.

The US administration has promised to give favorable consideration to granting extra economic aid to Israel if the Israeli government approves the plan for disengagement from the Palestinians, and work towards implementing it. This was agreed between US representatives and the professional team headed by Prime Minister’s Bureau director Adv. Dov Weissglas.

The aid requests reportedly include grants for development of the Negev, and financial aid in combating terror. The extra aid, which is in addition to the $10 billion already pledged by the Bush administration, is worth billions of dollars.

However, it was agreed that the aid requests would not be formally submitted at this stage, and would not be raised explicitly in the talks Prime Minister Ariel Sharon is due to hold with President George W. Bush. This understanding was reached in order that the additional aid should not seen as a direct quid pro quo for Israel’s evacuation of Gaza, but should rather be given after approval of the plan and commencement of implementation, so that it will appear as direct financing for development of the Negev and direct aid for the war on terror.

Sharon reportedly informed Minister of Finance Benjamin Netanyahu of the understanding with the US at a meeting at Sharon’s Sycamore Farm yesterday. Sharon told Netanyahu that the evacuation of the Gaza Strip, and the economic aid Israel will receive, would enable Israel to realize the vision of successive Israel governments: the reclamation of the Negev desert, and the creation of infrastructure for the absorption of thousands of people in that region of the country. Netanyahu sees this as a lever for speeding up growth.

Published by Globes [online] - www.globes.co.il - on April 7, 2004

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