- WASHINGTON (Reuters) - The
Bush administration said on Tuesday it was considering a multibillion-dollar
aid package for Israel that could help offset the cost of combating terrorism
and boost its hard-hit economy.
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- Israel is seeking up to $4 billion in extra military
assistance and $8 billion to $10 billion in loan guarantees to aid the
country's economy, according to administration sources and lobbyists.
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- The money could be spread out over several years and,
if Israel gets its way, would be in addition to the aid it now receives
annually. Israel is already the biggest single recipient of U.S. foreign
aid.
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- Israeli officials made the request in meetings this week
at the White House.
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- "They described the economic impact on Israel of
the ongoing war on terrorism ... as well as the impact of continuing uncertainty
in the region," White House spokesman Ari Fleischer said. "In
this context, the officials indicated that Israel is preparing a proposal
for assistance."
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- "And the United States, with this long term commitment
we have to Israel's security, prosperity and economic development, is putting
together a team to address with the Israelis their economic situation,"
Fleischer said.
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- Officials denied that military and economic assistance
would be tied to Israeli cooperation in any U.S.-led war with Iraq. "This
is not directly related to compensation in the event of attack," Fleischer
said.
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- White House officials said they have not committed to
any dollar-amounts for Israel. "But we are cognizant of the economic
conditions in Israel and we want to work with Israeli authorities on this
issue," Fleischer said.
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- Any aid package would be subject to congressional approval,
which could come early next year.
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- After the Gulf War, then-President George Bush asked
Congress for a similar package of loan guarantees worth $10 billion. Israel
requested the aid to help finance its absorption of a wave of immigrants
from the former Soviet Union. The guarantees helped Israel get low-cost
loans by ensuring they would be repaid in the event of default.
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- Last week, the Bush administration promised Israel $2.16
billion in foreign military assistance in 2004, a slight increase over
the $2.1 billion it asked Congress to provide in 2003. The aid is separate
from U.S. economic support to Israel, which amounted to $600 million in
2002 and is scheduled to fall by $120 million a year until it disappears
by 2008.
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- The Bush administration is also assembling a military
and economic aid package to help Turkey weather major economic disruptions
if war with Baghdad breaks out, according to administration and congressional
sources.
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- According to congressional sources, Bush is considering
an initial $700 million-$800 million package, which, in addition to economic
assistance, could clear the way for Turkey to purchase eight S-70B Seahawk
and six UH-60 Black Hawk helicopters. Over the next five years, bilateral
aid could amount to several billion dollars.
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- Tourism and trade in mainly Muslim Turkey could be badly
hit if hostilities break out, strangling economic recovery and adding to
the country's huge debt burden, which a $16 billion International Monetary
Fund pact is supposed to reduce.
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