U.S. to hold back some funds from Israel
WASHINGTON, Sept. 15 — The Bush administration said on Monday it would withhold some funds from Israel because of its settlement activities in Palestinian areas.
But the administration said it has yet to decide whether to penalize Israel over construction of a security fence, which President George W. Bush called ''a problem'' for U.S. efforts to build trust between Israelis and Palestinians.
The deductions would come from a $9 billion package of U.S. loan guarantees to help Israel weather a deep recession and fiscal crisis stemming in large part from the three-year-old Palestinian militant revolt against Israel for independence.
An administration official said the dollar-amounts for any deductions have yet to be determined.
The move comes as the United States attempts to revive the U.S.-backed peace plan known as the ''road map'' after a series of deadly Palestinian suicide bombings and Israel's decision, in principle, to expel Palestinian President Yasser Arafat from the West Bank.
''It is important for the administration to consistently implement policies like these in order to maintain a credible role as a broker in the negotiating process,'' said Israel Policy Forum spokesman Jonathan Jacoby.
Israel says it needs the fence to keep out suicide bombers.
Washington has expressed concern at Israel's initial plan to make the barrier enclose Jewish settlements deep in the West Bank. Most of the barrier consists of a metal fence equipped with electronic sensors and tipped by razor wire, while some sections are cement walls.
Palestinians describe it as a new ''Berlin Wall'' that grabs territory they want to be part of an independent state in the West Bank and Gaza Strip.
''Israel's settlement activity is illegal and it undermines the peace process so we shouldn't be contributing to it,'' said Arab American Institute Managing Director Jean AbiNader.
''The administration must be firm and deduct, dollar-for-dollar, the equivalent of what Israel is spending beyond the Green Line --including funding for the wall (fence),'' he added.
US LAW
Under heavy U.S. pressure, Israeli defense officials announced on Sunday that they had revised the planned course of the West Bank security barrier so that it would leave out a major Jewish settlement.
Despite the proposed Israeli changes, a Bush administration official said: ''We can't preclude any deductions (for fence construction). That is still a matter for discussion.''
Legislation signed by Bush calls for the administration to deduct from the face value of the loan guarantees an amount equal to any Israeli spending on settlement activities in Palestinian areas.
Deductions for settlement construction was expected, but Israel and its supporters in Congress argued that the fence should not be counted.
Administration officials say at issue is whether the fence constitutes settlement activities. ''That hasn't been decided yet,'' an official said.
The proposed deductions would be consistent with past U.S. policy toward Israel, the White House says.
When Bush's father was president, deductions were made from $10 billion in loan guarantees to help Israel absorb a flood of immigrants from the former Soviet Union.
Bush on Monday designed Secretary of State Colin Powell to oversee the loan program.
Israel's Finance Ministry said last month that it planned to sell $3 billion of 20-year or 30-year bonds in the United States in the fourth quarter. Israel, which has never defaulted on its loans, can sell the remaining $6 billion over the next three years.
Yeah lets see how long this lasts! Maybe we should do this with Iraq, Afghanistan, Jordan, S. Korea and other places in the world we throw taxpayer money around.
WASHINGTON, Sept. 15 — The Bush administration said on Monday it would withhold some funds from Israel because of its settlement activities in Palestinian areas.
But the administration said it has yet to decide whether to penalize Israel over construction of a security fence, which President George W. Bush called ''a problem'' for U.S. efforts to build trust between Israelis and Palestinians.
The deductions would come from a $9 billion package of U.S. loan guarantees to help Israel weather a deep recession and fiscal crisis stemming in large part from the three-year-old Palestinian militant revolt against Israel for independence.
An administration official said the dollar-amounts for any deductions have yet to be determined.
The move comes as the United States attempts to revive the U.S.-backed peace plan known as the ''road map'' after a series of deadly Palestinian suicide bombings and Israel's decision, in principle, to expel Palestinian President Yasser Arafat from the West Bank.
''It is important for the administration to consistently implement policies like these in order to maintain a credible role as a broker in the negotiating process,'' said Israel Policy Forum spokesman Jonathan Jacoby.
Israel says it needs the fence to keep out suicide bombers.
Washington has expressed concern at Israel's initial plan to make the barrier enclose Jewish settlements deep in the West Bank. Most of the barrier consists of a metal fence equipped with electronic sensors and tipped by razor wire, while some sections are cement walls.
Palestinians describe it as a new ''Berlin Wall'' that grabs territory they want to be part of an independent state in the West Bank and Gaza Strip.
''Israel's settlement activity is illegal and it undermines the peace process so we shouldn't be contributing to it,'' said Arab American Institute Managing Director Jean AbiNader.
''The administration must be firm and deduct, dollar-for-dollar, the equivalent of what Israel is spending beyond the Green Line --including funding for the wall (fence),'' he added.
US LAW
Under heavy U.S. pressure, Israeli defense officials announced on Sunday that they had revised the planned course of the West Bank security barrier so that it would leave out a major Jewish settlement.
Despite the proposed Israeli changes, a Bush administration official said: ''We can't preclude any deductions (for fence construction). That is still a matter for discussion.''
Legislation signed by Bush calls for the administration to deduct from the face value of the loan guarantees an amount equal to any Israeli spending on settlement activities in Palestinian areas.
Deductions for settlement construction was expected, but Israel and its supporters in Congress argued that the fence should not be counted.
Administration officials say at issue is whether the fence constitutes settlement activities. ''That hasn't been decided yet,'' an official said.
The proposed deductions would be consistent with past U.S. policy toward Israel, the White House says.
When Bush's father was president, deductions were made from $10 billion in loan guarantees to help Israel absorb a flood of immigrants from the former Soviet Union.
Bush on Monday designed Secretary of State Colin Powell to oversee the loan program.
Israel's Finance Ministry said last month that it planned to sell $3 billion of 20-year or 30-year bonds in the United States in the fourth quarter. Israel, which has never defaulted on its loans, can sell the remaining $6 billion over the next three years.
Yeah lets see how long this lasts! Maybe we should do this with Iraq, Afghanistan, Jordan, S. Korea and other places in the world we throw taxpayer money around.
