| | | Israel: Living and killing on US aid | | by Steven Katsineris | | In November 1947, the United States used extraordinary pressure to support a policy of partitioning Palestine into Jewish and Arab states. The US exerted the most intense pressure on Haiti, Liberia, The Philippines, China, Ethiopia, Greece and France to get them to vote for partition. The vote came on November 29, and the partition plan was approved thirty-three votes to thirteen with ten abstentions.
In recent times, the United States has tried to build an image as a mediator in the Middle East and pushed hard to impose a peace process, but again and again the US has exposed its bias, repeatedly blocking criticism of Israel at the UN. This support of Israeli policies has allowed Israel to continue to defy with impunity, long standing UN resolutions that require it to return conquered territory and stop the construction of Israeli settlements there.
What is less understood by many people is the depth of support for Israel, which is not just political and diplomatic, but much more far reaching. In fact the US contributes massive economic and military aid of over $4 billion annually to Israel in various and diverse forms. It is this supply of US armaments, technology and funds which plays a vital role in giving Israel the capacity to launch attacks on Palestinian territories, Lebanon and elsewhere and to continue to build and expand its settlements on Palestinian land.
The huge extent of economic support given to Israel makes the state all but totally dependent on US economic support. The economic lifeline between the US and Israel is indispensable providing, at no cash cost, the weapons Israel could not buy elsewhere. US aid for Israel approximates almost one half of Israel's national income.
Almost half the official aid consists of grants or instantaneously forgiven loans. This aid rises each year; a rare counter example to the slashed budget of the US administrations domestic programs. Military sales constitute two thirds of the official aid. When it comes to debt servicing these military 'sales', Israel can service this debt only in the formal sense that instalments are paid when due, but in fact these instalments are funded through new US aid each year.
The second level of aid from the US comes from a network of Jewish fund-raising groups. The IMF reports such aid at almost $1bn per year. With the exception of Israel's Development Bonds most of these funds are considered 'charitable donations' and are fully tax deductable in the US.
Discount aid is the third tier of economic assistance. Some of the weapons transferred to Israel are under invoiced at special discount prices. In addition there is extensive support for Israeli universities and research institutions funded by the US dept of education and other US agencies which total almost $100 million per year.
The US also helps out with export concessions. Israel is designated as a 'developing country', despite its high per capita income, which accords it reduced or non-existent tariffs on exports to the US. Ninety six per cent of Israel's $1bn exports to the US enter free of any tariffs.
There are other forms of aid to Israel that are hard to track. In 1976 the US Congress in the Arms Export Control Act created a special financing device which appeared to reduce the visibility of this aid and forestall any future criticism.
Also in March 1996, President Clinton pledged a further $100 million in US aid to fight 'terrorism' in the region and promised increased security co-operation between the US and Israel. In April that year the US agreed with Israel to jointly develop a laser system called 'The Nautilus' with the idea that the system would then be given to Israel for 'defence'.
In summary, Israel is the largest recipient of US aid in history. This US aid has made Israel one of the top five arms exporters in the world and the Israeli army the fourth most powerful in the world. Israeli military attacks like the 1982 Israeli invasion of Lebanon that killed 20,000 people and injured 50,000 others were subsidised by the US aid. Israeli colonial settlements in the West Bank and Gaza could not be built without US subsidies.
If there was ever a case of aid sustaining occupation and repression and funding invasions and killings, then this is certainly it.
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