ZGram - 11/28/2002 - "Israel's 14B war tab"

[irimland@zundelsite.org]

ZGram - Where Truth is Destiny

November 28, 2002

Good Morning from the Zundelsite:

How would it be if you and I asked Congress for $14 billion - in 
exchange for agreeing to stay out of the Iraq war?  Why is nobody 
laughing?

[START]

Israel's 14 B War Tab

Seeks U.S. aid before Iraq attack

By KENNETH R. BAZINET

DAILY NEWS WASHINGTON BUREAU

WASHINGTON - Israel wants $4 billion in new military aid and up to 
$10 billion in loan guarantees from Washington in part for assurances 
that Israel will show restraint if attacked by Iraq, sources said 
yesterday.

"This is similar to the loan guarantees of a decade ago," an Israeli 
source told the Daily News, referring to financial incentives it 
received in exchange for restraint during the Gulf War in 1991.

A pro-Israeli lobbyist familiar with the talks said, "Israel isn't 
the only country asking for compensation. ... It's a soft 
negotiation. It's saying we understand your needs, you need to 
understand our needs."

But the White House downplayed the link between the payment and 
Israeli restraint.

"This is not directly related to compensation in the event of 
attack," said spokesman Ari Fleischer.

"They [Israeli officials] described the economic impact on Israel of 
the ongoing war on terrorism ... as well as the impact of continuing 
uncertainty in the region," he said. "In this context, the officials 
indicated that Israel is preparing a proposal for assistance."

Israeli officials reasoned during talks this week that defensive 
preparations for another possible war between the U.S. and Iraq has 
cost them millions at a time when Israel's economy is tanking. The 
Palestinian uprising also has helped to thin Israel's treasury.

Israel already receives $2.9 billion annually in U.S. grants and loan 
aid - Washington's biggest yearly handout to any nation.

Prime Minister Ariel Sharon's chief of staff Dov Weisglass, Finance 
Ministry Director-General Ohad Marani and Ambassador to the U.S. 
Danny Ayalon made the request Monday in a meeting with national 
security adviser Condoleezza Rice.

Sharon has said Israel reserves the right to respond if attacked, and 
President Bush has said he recognizes that right.

Israel did not fire back when it was bombarded with Iraqi Scud 
missiles during the Gulf War, earning loan guarantees from 
then-President George Bush.

But this time there will be limits to Israel's patience.

"If there are dirty weapons - chemical or biological - we can't sit 
back this time," an official of the ruling Likud Party told The News.

Other hands out

Israel joins a handful of other countries asking for U.S. 
compensation in the event of war.

Russia wants assurances that its contracts with Saddam Hussein for a 
piece of the Iraqi oil industry will be honored. U.S. sources have 
said the Russians have been promised that those agreements will 
remain in force if Saddam is toppled.

Turkey has asked for economic aid, trade deals to boost sales of its 
goods in the U.S. and Washington's backing for admission into the 
European Union.

The EU economic consortium will consider expanding its ranks at a 
Dec. 12-13 summit, and Bush has pledged his support for Turkey.

Jordan also is looking for an undisclosed amount of financial aid 
from the U.S. if war breaks out with Iraq.

Jordan was not a part of the coalition that liberated Kuwait from 
Saddam's grip in the Gulf War but signaled its support for the UN 
resolution leading to weapons inspections set to begin today in Iraq.

[END]

(Source: 
http://www.nydailynews.com/11-27-2002/news/wn_report/story/38999p-36818c.html 
)