Panel Refuses To Alter U.S. Aid
By Tom Raum, Associated Press Writer, 12:35 PM ET 07/14/1999
WASHINGTON (AP) _ A House panel today rejected an attempt to alter the formula for
distributing foreign aid, keeping a system that has allowed Israel to get its money all at
once while parceling it out to Egypt.
That system is ``stupid foreign policy,'' said Rep. Sonny Callahan, R-Ala., chairman of
the House Appropriations subcommittee on foreign operations.
However, his effort to change the formula to end the upfront payments to Israel was
rejected by the subcommittee, which instead adopted by voice vote a proposal to revert to
the older system.
Supporters of keeping the status quo said this was not the time to change the formula
to Israel's disadvantage, particularly as the Mideast peace process seems to be getting
back on track and Israel's new prime minister, Ehud Barak, was on his way to Washington.
``We have an obligation in dealing with the Middle East to first do no harm,'' said
Rep. David Obey, D-Wis.
The debate occurred on a $12.8 billion foreign aid bill, which the subcommittee later
approved unanimously. The full Appropriations Committee will consider the legislation next
week.
The bill provides $960 million in economic assistance and $1.9 billion in military
assistance for Israel in the fiscal year that begins Oct. 1. That compares to $1.1 billion
in economic assistance and $1.9 billion in military assistance for Israel in the current
year.
For Egypt, the bill provides $735 million in economic assistance, down from $775
million in the current year; and $1.3 billion in military assistance, the same as now.
However, Israel gets its economic assistance up front, enabling it to put the money in
an interest-bearing account.
Callahan sought to change that formula, saying it made no sense to give Israel
preferential treatment. Giving Israel its money up front also reduces any leverage the
United States had over how the money is spent, he said. He blamed the ``Israel lobby'' for
the existing formula, which has been in effect for nearly two decades.
Callahan removed the no-advance-payment provision from the legislation he presented to
the subcommittee. But Reps. Joe Knollenberg, R-Mich., and Nita M. Lowey, D-N.Y., offered
an amendment to restore it, and it was adopted by voice vote.
Rep. Bill Young, R-Fla., chairman of the Appropriations Committee, proposed as a middle
ground of adding $25 million to Egypt's accounts to help offset the imbalance. But
Callahan protested that ``two wrongs don't make a right'' and Young withdrew his proposal.
The overall bill has drawn a veto threat from the administration because it is far
below President Clinton's request for $14.6 billion.
The bill provides $200 million in economic assistance and $125 million in military
assistance for Jordan.
It does not include any of the $500 million Clinton requested to carry out the 1998 Wye
River peace accords, nor does it provide any funds for reconstruction in the Balkans. And
it provides $725 million in aid to Russia and other former Soviet republics, some $307
million beneath Clinton's request.
Furthermore, it would withhold half the amount earmarked for Russia ``unless it ends
nuclear and ballistic missile cooperation with Iran.''
Source:
http://www.infobeat.com/stories/cgi/story.cgi?id=2560285419-bcf
