Fall Free for All

By Dennis J. Wamsted

Two issues facing Congress this fall are US arms sales to Arab allies and Israel's request for US guarantees of up to $10 billion in loans to resettle Soviet Jews. The outlines of both debates were sketched during congressional debate earlier this summer.

Helms' Harangue

Senator Jesse Helms (R-NC), Israel's most obsequious Senate booster ever since 1984, when pro Israel PACs ganged up to fund an opponent for him, weighed in wordily during the Senate's consideration of the fiscal 1991 foreign aid authorization bill ` S * 1435. Helms, who picked up $7,000 in pro-Israel PAC donations himself in 1990, and clearly hopes for lots and lots more, proposed an amendment saying that "It is the sense of Congress that no US policy or assistance for Israel may be conditioned upon the denial of the right of Jews to settle anywhere in the area identifiable as biblical Israel, including Judeo and Samara [the West Bank]."

Characteristically undercutting a major foreign policy initiative of the administration of his own party, Helms told his, colleagues such a resolution is needed because the Bush administration may link the proposed housing loan guarantees to an Israeli agreement not to build more settlements on the occupied West Bank. "By mandating an arbitrary halt to the settlements as a precondition for negotiations," Helms continued, "the US would be in the unique set of circumstances of insisting that the central principle at stake in the negotiations that is, the right of Israel to exists is somehow to be surrendered before negotiations begin. . . ." Helms subsequently withdrew the proposal, but his strategy for this fall's debate is clear.

Biden's Arms Test

US arms sales to the Middle East, and particularly to its regional Arab allies, have played a central role in much of the congressional foreign policy debate over the past six months. A number of measures designed to curb these sales have been introduced in both the House and Senate.

In the House, language was added to its version of the foreign aid authorization bill designed to make sales to America's Arab allies more difficult. In the Senate, language was added to the State Department authorization bill that would require the administration to certify to Congress that arms transfers "will not contribute to an arms race."

Beyond this, Sen. Joseph Biden (D-DE), who has accepted $47,577 from pro Israel PACs, introduced a cleverly crafted amendment to the foreign aid bill that, if adopted, could have led to a complete halt in US arms sales to its Arab allies. As written, Biden's proposal would have banned sales to any country in the region whose leadership was not freely elected or, failing that, any country that did not have a record showing "continuing progress with respect to developing [democratic] institutions."

Further, Biden's proposal would have required Arab oil exporters to demonstrate that they had invested "continuing and substantial" sums to bolster regional economic development efforts.

Biden's proposal was critiqued by a number of other senators, particularly Sen. Dave Durenberger (R-MN), who complained that the Delaware Democrat's proposal set too high a threshold for US arms sales. "Where else in the world do we condition US policies that are intended to promote fundamental US interests on an independent, sovereign country's foreign aid programs?" Durenberger asked his colleagues. "Nowhere, as far as I can determine at this moment."

Although an effort to kill Biden's proposal was defeated by a vote of 3957, Biden subsequently withdrew it after Senate Republicans threatened to delay passage of the entire foreign aid authorization bill.

Still, Biden made no secret of his desire to reconsider the proposal sometime this fall. "I will tell everyone now there may be another vehicle upon which I bring this same amendment up at another time." Biden's warning is particularly important given the possibility that the administration will finally announce the long anticipate second half of the multibillion-dollar arms sale to Saudi Arabia that was initially proposed last year.

More Aid for Israel?

Stymied in their efforts to boost direct aid to Israel, which has been set at $1.8 billion in military aid and $1.2 billion in economic aid for the past several years, Israel's congressional backers may have found a means of indirectly increasing funding for the Jewish state. In a little noticed move, Sen. Christopher Dodd (D-CT), a member of the Senate Foreign Relations Committee, added a provision to the 1992 State Department authorization bill creating a $1 billion pool of loan guarantees for Israel and a number of other US allies to tap into to purchase US defense goods.

Although not designed specifically for Israel members of NATO, Japan, Australia and New Zealand would also be able to use the guarantees the proposal would give Israel an easy opportunity to finance the purchase of additional US weaponry. Importantly, the proposal is indefinite, authorizing $1 billion annually "to enhance the ability of US exporters to compete on an equal footing with foreign competitors for those markets."

Currently, much of the $1.8 billion in military aid earmarked for Israel is committed to purchases made in prior years. Consequently, until recently, Israel has been unable to buy several top of the line US defense systems, including the Apache helicopter and the Patriot antimissile system of Gulf war fame. Access to these loan guarantees could significantly increase Israel's effective purchasing power.

While the proposal would not impose a large upfront cost on the US Treasury, requiring initial appropriations of only about $63.5 million, its longer term costs could be significantly higher, particularly if Israel or one of the other eligible countries defaulted, forcing the US to repay the entire loan.

Dennis J. Wamsted is a freelance writer specializing in Congress and Middle East affairs.