Israel is asking for a whopping $14 BILLION extra aid from the US!

Rice to present U.S. response to Israel's $14 billion aid request


By Moti Bassok




U.S. National Security Advisor Condoleezza Rice was expected to give her country's response to Israel's request for 14 billion in aid
following a White House meeting Monday with Prime Minister Ariel Sharon's bureau chief Dov Weisglass, Treasury Director-General Ohad
Marani, and Israel's ambassador to the U.S. Danny Ayalon. Marani informed Rice of Israel's economic situation and requested $10 billion in
loans and $4 billion in special military aid, to be spread over the course of several years.

President George Bush is expected to quickly approve the request with minor changes, Israeli sources said.

The sources said the Republican congressional majority would approve the aid within 3-6 months. After Finance Ministry director general
Ohad Marani and Prime Minister Ariel Sharon's bureau chief Dov Weisglass submit the request, it will be handled by both Israeli and U.S.
officials who will determine the duration of the grant and guarantees, and various technical details. The guarantees will apparently be for five
years but it is unclear how the defense aid will be laid out.

Sharon told Defense Minister Shaul Mofaz during a meeting eight days ago with Finance Minister Silvan Shalom, that as soon as the U.S.
makes a positive decision on the defense grant, he will consent to some of Mofaz's requests for budget increases. The sources say the grant
will allow the government to direct defense spending to growth oriented projects.

Some treasury officials are not pleased with the request for such high guarantees, fearing that some of the money will not be directed to
growth projects.

However, sources at the prime minister's office say news of the aid will improve the country's international financial standing, and could
encourage both local and foreign investors to reconsider Israel. The U.S. aid will also substantially influence the strategic situation in the
Middle East.

Sharon first raised the question of aid in his Washington meeting with Bush in mid-October. The formal request was completed by Marani's
staff in the past two weeks, with the explanation that Israel has increased military spending in the past two years because of the Palestinian
uprising and the expected U.S. war with Iraq. Last week, Turkey and Jordan received generous American military aid of $2 billion to prepare
for the possible war with Iraq.

The request for the guarantees - the option of getting improved loan terms from U.S. banks - is based on Israel's need to stabilize the
economy and pull out of recession.

Last week Washington approved Israel's annual military aid of $2.16 billion for 2004, and is expected to approve its civil aid soon.


Tuesday, November 26, 2002 Kislev 21, 5763
Israel Time: 23:06 (GMT+2