wrmea.com

OCTOBER/NOVEMBER 1999, pages 51, 92

Special Report

 

Money Bills Hold Some Middle East Surprises Wye River Funding Withheld

By Shirl McArthur

Before disappearing for their August recess, each house of Congress managed to pass the FY 2000 money bills most affecting the Middle East. However, all of them still must go through the conference committee process, and the threat of presidential veto hangs over at least two of them, so their final contents are still far from certain.

The bill of most interestis the Foreign Operations, or foreign aid, Appropriations bill. The Senate passed its version on June 30, and the House followed on Aug. 3. Most press attention was given to the fact that both versions’ aid totals, $12.7 billion in the Senate and $12.6 billion in the House, are nearly $2 billion less than the administration requested, and about $700 million less than in the current fiscal year. For this reason, and because of several other provisions in one or both of the versions, including the abortion language that almost produced a veto last year, the Office of Management and Budget sent a nine-page memo saying President Clinton’s advisers would recommend he veto the bill.

However, of most interest to the Middle East is that the $400 million the administration requested in FY ’00 for Israel and the Palestinian Authority to fund the Wye River agreement was not included, although the $100 million requested for Jordan was included.

Readers will recall that the original Wye request totaled $1.9 billion over three years, divided into $1.2 billion for Israel ($600 million in the rapidly expiring FY ’99 and $300 million in each of FY ’00 and FY ’01), $400 million for the PA ($200 million in FY ’99 and $100 million in each of the other two years), and $300 million for Jordan ($100 million each year). So far, only the $100 million for Jordan was appropriated in FY ’99, and Congress appears to be waiting to see movement on implementing the Wye agreement before rewarding either of the parties. Rep. David Obey (D-WI) reportedly was especially critical, saying “the money should not be in the bill until there is performance.” The administration will probably request an “emergency” appropriation later in FY ’00 to pay for Kosovo peacekeeping operations, and may try to include the Wye money at that time.

Israel, Egypt Aid Shrinks

The Senate and the House both continued last year’s agreed plan to phase out economic aid to Israel and Egypt over 10 years, with half of Israel’s reduction going to increase its military aid. Interestingly, Clinton had requested an additional cut in economic aid to Israel and Egypt of $30 million and $20 million, respectively, but this was rejected by both houses of Cogress. Unless the conference committee produces surprises, the totals will likely be:

  • ISRAEL $960 million in economic aid (-$120 million from FY ’99), $1.92 billion in military aid (+$60 million), and $60 million for “refugee resettlement”;

  • EGYPT $735 million in economic aid (-$40 million) and $1.3 billion in military aid;

  • JORDAN (including the Wye funding) $200 million in economic aid and $125 million in military aid.

On the floor of the House, Rep. Tom Campbell (R-CA) proposed an amendment to reduce Israel’s economic aid by $30 million and Egypt’s by $20 million, to divert the money elsewhere, citing Clinton’s request, but his amendment received only 13 votes. Those voting with Campbell were Reps. Rick Boucher (D-VA), John Conyers (D-MI), John Hostettler (R-IN), Cynthia McKinney (D-GA), Ron Paul (R-TX), Donald Payne (D-NJ), Dana Rohrabacher (R-CA), Mark Sanford (R-SC), James Sensenbrenner (R-WI), Gene Taylor (D-MS), Bennie Thompson (D-MS), and Melvin Watt (D-NC).

Also, in the House committee debate, Foreign Operations Subcommittee Chairman Sonny Callahan (R-AL) complained publicly about the power of AIPAC after his subcommittee refused to agree with his proposal to end the practice of giving Israel all of its money at the beginning of the fiscal year, thus enabling it to earn interest, while other countries receive their aid throughout the year. Interestingly, also during the committee debate, long-time Israel supporter Michael Forbes, a New York congressman who recently switched from Republican to Democrat, publicly complained about Israel’s “consistent failure to meet the requirements” of its agreements to ship half of the grain it receives, under a farm-loan guarantee program, on American ships.

No amount was earmarked for the Palestinians. However, the House report says that funding for the West Bank and Gaza should not exceed the FY ’99 amount ($75 million).

In a major victory, the Senate bill includes an amendment by Sen. Spencer Abraham (R-MI) earmarking $15 million for Lebanon, which would represent an increase of $3 million over the amount disbursed this year. Although the House bill included no such earmark, Reps. Ray LaHood (R-IL), Nick Rahall (D-WV), and John Sununu (R-NH) wrote to the House conferees urging them to accept the Senate language.

Both bills also include most of the same Middle East provisions as in previous bills, and the ones that survive the conference committee will be summarized in more detail at that time. Some of these are provisions that prohibit either direct or indirect assistance to several countries, including Iraq, Libya, Iran, Sudan, or Syria; prohibit assistance to any country violating U.N. sanctions against Iraq; prohibit assistance to the Palestinian Broadcasting Corporation; and withhold at least 5 percent of aid to any country violating the U.N. sanctions against Libya. The presidential waiver authority to, in effect, renew the Middle East Peace Facilitation Act is also included.

Finally, both bills also earmark $10 million for the Iraqi opposition groups designated under the “Iraq Liberation Act.”

Defense Plums for Israel

Although the bills have not yet been passed, early indications are that the Defense Appropriations bill will include funding for several so-called U.S.-Israel cooperative programs, including the third Arrow anti-missile defense battery, the Hunter unmanned aerial vehicle, and the LITENING targeting pod for F-16s, in addition to funding for the “Counter-Terror Technical Support Working Group.”

Authorization Bills Include Pro-Israel Provisions

The U.S. press emphasized the security provisions in the State Department Authorization bill, which the House grandiosely renamed the “Embassy Security Act of 1999,” but both the House and the Senate versions include a couple of provisions likely to damage U.S. interests. Perhaps members of Congress who inserted them were emboldened by the knowledge that if the bill, after it is approved by the conference committee, still contains the Senate’s onerous restrictions on paying U.S. arrears in its U.N. dues, it will almost certainly be vetoed by the president.

Both versions include an amendment, proposed in the Senate by Sen. John Ashcroft (R-MO) and in the House by Reps. Robert Andrews (D-NJ), Matt Salmon (R-AZ), and Jim Saxton (R-NJ), that would require the secretary of state to submit a detailed and complicated report every six months regarding terrorist attacks against U.S. citizens in Israel or the West Bank and Gaza. Heading the list of items required in the report is “a list of formal commitments the Palestinian Authority has made to combat terrorism.” Also, “a list of any terrorist suspects in each case who are members of Palestinian police or security forces, the Palestinian Liberation Organization, or any Palestinian governing body.”

In addition, the Senate version includes the same four provisions that were introduced last year (but did not survive in the version sent to the president) that effectively declare that Jerusalem is the capital of Israel.

On the positive side, the House version also includes an amendment by Rep. Bernie Sanders (I-VT) that authorizes $1.5 million for people-to-people activities to support the Middle East peace process, involving young people from Israel, Palestine, the Arab countries, and the U.S.

Shirl McArthur, a retired foreign service officer, is a consultant in the Washington, DC area.