U.S. Aid to Israel Increases in 1997

By Shawn L. Twing

U.S. grant aid to Israel during the 1997 fiscal year which began on Oct. 1, 1996 increased by 3 percent over the previous year. The FY 1997 total of military and economic grants and loan guarantees to Israel was $5.6758 billion (see chart) compared to the 1996 total of $5.5053 billion in grants and loan guarantees, an increase of $170.5 million.

The FY ’97 total breaks down to $15,550,137 a day, 365 days a year. The additional aid came from the Departments of Defense ($120.5 million) and State ($50 million) in the form of weapons purchases from Israeli companies for U.S. use, excess U.S. defense items transferred to Israel, and anti-terrorism assistance.

Additional Pentagon funds allocated to Israel in fiscal year 1997 include:

• Arrow anti-tactical ballistic missile: $200 million. Initial press reports following the April 1996 signing of a defense agreement between then Israeli Prime Minister Shimon Peres and U.S. President Bill Clinton said that the $200 million would be given to Israel at the rate of $40 million per year for five years. According to the Congressional Research Service, however, the entire $200 million lump sum was taken from the FY97 Department of Defense appropriations bill.

• Nautilus Laser System: $50 million. The U.S.-Israel Nautilus laser program received a ten-fold increase in funding from $5 million allocated in FY96. U.S. and Israeli officials have suggested that the program’s Tactical High Energy Laser (THEL) possibly could be used to defend northern Israel from Hezbollah Katyusha rocket attacks launched from within Israel’s self-imposed “security zone” in southern Lebanon.

• U.S. purchases of Israeli defense products: $93.3 million. According to a report in the Sept. 30-Oct. 6, 1996 issue of Defense News, U.S. lawmakers added $39 million to the Pentagon’s appropriations bill for 50 Israeli co-produced AGM-142 HAVE-NAP missiles that were not requested by the Pentagon, $24.3 million for the Boost-Phase Intercept program even though the Pentagon asked for only $9.3 million, and $30 million to buy Israeli co-produced Pioneer unmanned aerial vehicles (UAVs), although the Pentagon did not request any funding for the Pioneer UAV.

• Excess Military Equipment Given to Israel: $50 million. During an October 1996 meeting in Washington between U.S. Secretary of Defense William Perry and Israel’s Minister of Defense Yitzhak Mordechai, officials announced that the United States would give Israel 36 M48A3 Chaparral missile launchers, 500 Chaparral guided missiles, and a platoon command post for the Hawk air defense missile system from U.S. stores. The decision to transfer the military hardware followed by two weeks the emergency meeting between Palestinian leader Yasser Arafat and Israeli Prime Minister Binyamin Netanyahu. This meeting was arranged by President Clinton in the wake of September clashes between Palestinians and Israelis after the opening by Israel of a controversial archeological tunnel adjacent to the Harem al-Sharif in Arab East Jerusalem.

Congress also added $50 million to the Department of State’s foreign aid appropriations bill in FY97 to purchase anti-terrorism equipment for Israel’s use. This was the second half of the $100 million promised Israel by President Clinton following a series of terrorist attacks in Tel Aviv, Haifa and Jerusalem last year.

Despite Prime Minister Netanyahu’s announcement before the U.S. Congress last summer that it was time for Israel to consider reducing U.S. economic aid, nothing suggests that this is likely in the near future. Israeli officials later announced that the prime minister’s comments referred to a scenario at least three years down the road, and Prime Minister Netanyahu made it clear that he was referring only to economic aid, not military aid, which is by far the largest component of the U.S. aid package. (For a complete breakdown of fiscal year 1996 U.S. aid to Israel see the April 1996 Washington Report on Middle East Affairs, pgs. 7, 49-52.)