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Mar-23-2010 18:47printcomments

Israel and Aid

Israel abandoned a long ago pledge to draw less U.S. taxpayer funding.

Israel's wall concentration
U.S. funding means nothing but the best for Israel's military.
Courtesy: American Pendulum

(WASHINGTON D.C.) - On July 10, 1996, at a Joint Session of the United States Congress, Israeli Prime Minister Benjamin Netanyahu received a standing ovation for these words:

“With America’s help, Israel has grown to be a powerful, modern state. …But I believe there can be no greater tribute to America’s long-standing economic aid to Israel than for us to be able to say: we are going to achieve economic independence. We are going to do it. In the next four years, we will begin the long-term process of gradually reducing the level of your generous economic assistance to Israel.”

Since 1996, the American taxpayers are still sending Israel $3 billion a year and providing assorted loan guarantees, waivers, rich technology transfers and other indirect assistance. Before George W. Bush left office a memorandum of understanding between the U.S. and Israel stipulated an assistance package of $30 billion over the next ten years to be transferred in a lump sum at the beginning of every fiscal year. Israel’s wars and colonies still receive U.S. taxpayer monies.

What happened to Mr. Netanyahu’s solemn pledge to the Congress? The short answer is that Congress never called in the pledge.

In the intervening years, Israel has become an economic, technological and military juggernaut. Its GDP is larger than Egypt’s even though Israel’s population is less than one tenth that of the Arab world’s most populous nation. The second largest number of listings on America’s NASDAQ Exchange after U.S. companies are from Israel, exceeding listings of Japan, Korea, China and India combined. Its venture capital investments exceed those in the U.S., Europe and China on a per capita basis.

Israel is arguably the fifth most powerful military force in the world, and Israel’s claims on the U.S.’s latest weapon systems and research/development breakthroughs are unsurpassed. This combination has helped to make Israel a major arms exporter.

The Israeli “economic miracle” and technological innovations have spawned articles and a best-selling book in recent months. The country’s average GDP growth rate has exceeded the average rate of most western countries over the past five years. Israel provides universal health insurance, unlike the situation in the U.S., which raises the question of who should be aiding whom?

Keep in mind, the U.S. economy is mired in a recession, with large rates of growing poverty, unemployment, consumer debt and state and federal deficits. In some states, public schools are shutting, public health services are being slashed, and universities are increasing tuition while also cutting programs. Even state government buildings are being sold off.

Under U.S. law, military sales to Israel cannot be used for offensive purposes, only for “legitimate self-defense.” Nonetheless, there have been numerous violations of the Arms Export Control Act by Israel. Even the indifferent State Department has found, from time to time, that munitions such as cluster bombs were “likely violations.”

Violations would lead to a cut-off in aid but with the completely pro-Israel climate in Washington, the White House has never allowed such findings to be definitive.

The same indifference applies to violations of the U.S. Foreign Assistance Act that prohibits aid to countries engaging in consistent international human rights violations. These include the occupation, colonization, blockades and military assaults on civilians in the Palestinian West Bank and Gaza, regularly documented by the highly regarded Israeli human rights group B’Tselem as well as by Amnesty International and Human Rights Watch.

This week, Prime Minister Netanyahu visits President Barack Obama after the recent Israeli announcement of 1,600 new housing units in East Jerusalem made while Vice President Joe Biden was visiting that country.

The affront infuriated New York Times columnist, Tom Friedman, who wrote that Mr. Biden should have packed his bags and flown away leaving behind a scribbled note saying “You think you can embarrass your only true ally in the world, to satisfy some domestic political need, with no consequences? You have lost total contact with reality.”

Friedman, a former Times Middle East correspondent, concluded his rebuke by writing: “Palestinian leaders Mahmoud Abbas and Salam Fayyad are as genuine and serious about working toward a solution as any Israel can hope to find.”

But until a few days ago, the U.S. government had no levers over the Israeli government. Cutting off aid isn’t even whispered in the halls of Congress. Raising the issue would further galvanize Israel’s allies, including AIPAC.

The only lever left for the U.S. suddenly erupted into the public media a few days ago. General David Petraeus told the Senate that resolving the Israeli-Palestinian conflict has foreign policy and national security ramifications for the United States.

He said that “The conflict foments anti-American sentiment, due to a perception of U.S. favoritism for Israel. Arab anger over the Palestinian question limits the strength and depth of U.S. partnerships with governments and peoples in the Area of Responsibility…Meanwhile, Al-Qaeda and other military groups exploit that anger to mobilize support.”

A few days earlier, Vice President Joe Biden told Prime Minister Netanyahu in Israel that “what you’re doing here undermines the security of our troops who are fighting in Iraq, Afghanistan and Pakistan.”

What Obama’s people are publically starting to say is that regional peace is about U.S. vital interests in that large part of the Middle East and, ultimately, the safety of American soldiers and personnel.

As one retired diplomat commented “This could be a game-changer.”

Original article: News and Commentary / U.S. and World Perspectives American Pendulum

To learn more visit: nader.org

Special thanks to: Intifada-Palestine.com

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Ralph Nader is one of America's most effective social critics. Named by The Atlantic as one of the 100 most influential figures in American history, and by Time and Life magazines as one of the hundred most influential Americans of the twentieth century, his documented criticism of government and industry has had widespread effect on public awareness and bureaucratic power. He is the "U.S.'s toughest customer" says Time magazine. His inspiration and example have galvanized a whole population of consumer advocates, citizen activists, and public interest lawyers who in turn have established their own organizations throughout the country.




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Vic March 24, 2010 6:42 am (Pacific time)

A "loan guarantee" sounds like it would be paid back, right? To date, not one penny of the billions of guaranteed "loans" to Israel has been returned. Gift Guarantee would be a more representative term. But "loan" sounds better and makes it easier for our representatives to give away our tax dollars without repercussions. "Representatives" that do not represent us and instead scramble to give away our money to a country that has free health care and college for all its Jewish citizens while Americans do without should be arrested, tried and deported. They should not darken the halls of our congress or senate.


gp March 23, 2010 10:29 pm (Pacific time)

God,I hope Ralph is right on this, he is usually right on the money. Perhaps Americans will wake up if the news that we give Israel all that money and they have universal health care and we have the big joke health care plan and that even General Petraeus has seen the light about the absurdity of our blind obedience to the Israeli Lobby. All those phosphorus bombs used by Israel in the massacre of a year ago were made in the US. This means that if we pay for the wepons,if we manufacture the wepons and let Israel get away with murder, we are murderers too. Bunch of Baby Killers is what America really is, how sad.

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