Israel, which gets close to $3 billion a year in mostly
military aid, has been seeking an extra $4 billion in direct
aid and $8 billion in loan guarantees to help it recover from a
two-year recession and 28-month-old Palestinian uprising.
Israel's request comes as the United States is offering a
$26 billion economic aid package -- $6 billion in grants and up
to $20 billion in loan guarantees -- to Turkey in exchange for
basing U.S. troops there for a possible war with Iraq.
"We are in the process now of the end negotiation and the
dialogue between the professional teams," said Dov Weissglass,
effectively the chief of staff to Israeli Prime Minister Ariel
Sharon. "We are about to conclude the informational parameters
of the negotiations.
"Then our request, after being substantiated, supported, by
the data that we have provided to our American colleagues, will
be submitted for consideration and approval of the political
level here in the United States and hopefully that will happen
in a very timely manner."
Weissglass spoke after meeting U.S. Deputy Secretary of
State Richard Armitage and before talks at the White House on
the aid package.
Afterward, White House officials said they were considering
the Israeli requests.
"We recognize the impact on Israel of the ongoing war on
the terrorism and of regional instability. We have great
confidence in the Israeli economy and we are continuing to
examine how the U.S. can contribute to helping to ensure its
bright future," said White House National Security Council
spokesman Sean McCormack.
Congressional sources said the administration may scale
back the amount of military aid, focusing instead on economic
assistance.
Israel, battered by the global economic slowdown and the
Palestinian uprising for independence, has already agreed to a
provision meant to ensure any new funds are not spent on
Israeli settlement activities.
It has also agreed to pay loan fees, including subsidy
costs, for the $8 billion in loan guarantees that it wants.
Israel, which expects those costs to be less than $200 million,
has never defaulted on its loans and would likely find it
easier to raise funds with U.S. backing.
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