-Caveat Lector-

http://www.wrmea.com/html/us_aid_to_israel.htm

10/25/2002

U.S Financial Aid To Israel: Figures, Facts, and Impact

Summary

Benefits to Israel of U.S. Aid
Since 1949 (As of November 1, 1997)

Foreign Aid Grants and Loans
$74,157,600,000

Other U.S. Aid (12.2% of Foreign Aid)
$9,047,227,200

Interest to Israel from Advanced Payments
$1,650,000,000

Grand Total
$84,854,827,200

Total Benefits per Israeli
$14,630
 Cost to U.S. Taxpayers of U.S.
Aid to Israel

Grand Total
$84,854,827,200

Interest Costs Borne by U.S.
$49,936,680,000

Total Cost to U.S. Taxpayers
$134,791,507,200

Total Cost per Israeli
$23,240

Special Reports:

U.S. Aid To Israel: The Strategic Functions
U.S. Aid to Israel: What U.S. Taxpayer Should Know
U.S. Aid to Israel: Interpreting the 'Strategic Relationship'
The Cost of Israel to U.S. Taxpayers:
True Lies About U.S. Aid to Israel

THE STRATEGIC FUNCTIONS OF U.S. AID TO ISRAEL
By Stephen Zunes

Dr. Zunes is an assistant professor in the Department of Politics at the
University of San Francisco

Since 1992, the U.S. has offered Israel an additional $2 billion annually in
loan guarantees. Congressional researchers have disclosed that between 1974
and 1989, $16.4 billion in U.S. military loans were converted to grants and
that this was the understanding from the beginning. Indeed, all past U.S.
loans to Israel have eventually been forgiven by Congress, which has
undoubtedly helped Israel's often-touted claim that they have never
defaulted on a U.S. government loan. U.S. policy since 1984 has been that
economic assistance to Israel must equal or exceed Israel's annual debt
repayment to the United States. Unlike other countries, which receive aid in
quarterly installments, aid to Israel since 1982 has been given in a lump
sum at the beginning of the fiscal year, leaving the U.S. government to
borrow from future revenues. Israel even lends some of this money back
through U.S. treasury bills and collects the additional interest.

In addition, there is the more than $1.5 billion in private U.S. funds that
go to Israel annually in the form of $1 billion in private tax-deductible
donations and $500 million in Israeli bonds. The ability of Americans to
make what amounts to tax-deductible contributions to a foreign government,
made possible through a number of Jewish charities, does not exist with any
other country. Nor do these figures include short- and long-term commercial
loans from U.S. banks, which have been as high as $1 billion annually in
recent years.

Total U.S. aid to Israel is approximately one-third of the American foreign-
aid budget, even though Israel comprises just .001 percent of the world's
population and already has one of the world's higher per capita incomes.
Indeed, Israel's GNP is higher than the combined GNP of Egypt, Lebanon,
Syria, Jordan, the West Bank and Gaza. With a per capita income of about
$14,000, Israel ranks as the sixteenth wealthiest country in the world;
Israelis enjoy a higher per capita income than oil-rich Saudi Arabia and are
only slightly less well-off than most Western European countries.

AID does not term economic aid to Israel as development assistance, but
instead uses the term "economic support funding." Given Israel's relative
prosperity, U.S. aid to Israel is becoming increasingly controversial. In
1994, Yossi Beilen, deputy foreign minister of Israel and a Knesset member,
told the Women's International Zionist organization, "If our economic
situation is better than in many of your countries, how can we go on asking
for your charity?"
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U.S. Aid to Israel: What U.S. Taxpayer Should Know

by Tom Malthaner

This morning as I was walking down Shuhada Street in Hebron, I saw graffiti
marking the newly painted storefronts and awnings. Although three months
past schedule and 100 percent over budget, the renovation of Shuhada Street
was finally completed this week. The project manager said the reason for the
delay and cost overruns was the sabotage of the project by the Israeli
settlers of the Beit Hadassah settlement complex in Hebron. They broke the
street lights, stoned project workers, shot out the windows of bulldozers
and other heavy equipment with pellet guns, broke paving stones before they
were laid and now have defaced again the homes and shops of Palestinians
with graffiti. The settlers did not want Shuhada St. opened to Palestinian
traffic as was agreed to under Oslo 2. This renovation project is paid for
by USAID funds and it makes me angry that my tax dollars have paid for
improvements that have been destroyed by the settlers.

Most Americans are not aware how much of their tax revenue our government
sends to Israel. For the fiscal year ending in September 30, 1997, the U.S.
has given Israel $6.72 billion: $6.194 billion falls under Israel's foreign
aid allotment and $526 million comes from agencies such as the Department of
Commerce, the U.S. Information Agency and the Pentagon. The $6.72 billion
figure does not include loan guarantees and annual compound interest
totalling $3.122 billion the U.S. pays on money borrowed to give to Israel.
It does not include the cost to U.S. taxpayers of IRS tax exemptions that
donors can claim when they donate money to Israeli charities. (Donors claim
approximately $1 billion in Federal tax deductions annually. This ultimately
costs other U.S. tax payers $280 million to $390 million.)

When grant, loans, interest and tax deductions are added together for the
fiscal year ending in September 30, 1997, our special relationship with
Israel cost U.S. taxpayers over $10 billion.

Since 1949 the U.S. has given Israel a total of $83.205 billion. The
interest costs borne by U.S. tax payers on behalf of Israel are $49.937
billion, thus making the total amount of aid given to Israel since 1949
$133.132 billion. This may mean that U.S. government has given more federal
aid to the average Israeli citizen in a given year than it has given to the
average American citizen.

I am angry when I see Israeli settlers from Hebron destroy improvements made
to Shuhada Street with my tax money. Also, it angers me that my government
is giving over $10 billion to a country that is more prosperous than most of
the other countries in the world and uses much of its money for
strengthening its military and the oppression of the Palestinian people.
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"U.S. Aid to Israel: Interpreting the 'Strategic Relationship"'
by Stephen Zunes

"The U.S. aid relationship with Israel is unlike any other in the world,"
said Stephen Zunes during a January 26 CPAP presentation. "In sheer volume,
the amount is the most generous foreign aid program ever between any two
countries," added Zunes, associate professor of Politics and chair of the
Peace and Justice Studies Program at the University of San Francisco.

He explored the strategic reasoning behind the aid, asserting that it
parallels the "needs of American arms exporters" and the role "Israel could
play in advancing U.S. strategic interests in the region."

Although Israel is an "advanced, industrialized, technologically
sophisticated country," it "receives more U.S. aid per capita annually than
the total annual [Gross Domestic Product] per capita of several Arab
states." Approximately a third of the entire U.S. foreign aid budget goes to
Israel, "even though Israel comprises just . . . one-thousandth of the
world's total population, and already has one of the world's higher per
capita incomes."

U.S. government officials argue that this money is necessary for "moral"
reasons-some even say that Israel is a "democracy battling for its very
survival." If that were the real reason, however, aid should have been
highest during Israel's early years, and would have declined as Israel grew
stronger. Yet "the pattern . . . has been just the opposite." According to
Zunes, "99 percent of all U.S. aid to Israel took place after the June 1967
war, when Israel found itself more powerful than any combination of Arab
armies . . ."

The U.S. supports Israel's dominance so it can serve as "a surrogate for
American interests in this vital strategic region." "Israel has helped
defeat radical nationalist movements" and has been a "testing ground for
U.S. made weaponry." Moreover, the intelligence agencies of both countries
have "collaborated," and "Israel has funneled U.S. arms to third countries
that the U.S. [could] not send arms to directly, . . . Iike South Africa,
like the Contras, Guatemala under the military junta, [and] Iran." Zunes
cited an Israeli analyst who said: "'It's like Israel has just become
another federal agency when it's convenient to use and you want something
done quietly."' Although the strategic relationship between the United
States and the Gulf Arab states in the region has been strengthening in
recent years, these states "do not have the political stability, the
technological sophistication, [or] the number of higher-trained armed forces
personnel" as does Israel.

Matti Peled, former Israeli major general and Knesset member, told Zunes
that he and most Israeli generals believe this aid is "little more than an
American subsidy to U.S. arms manufacturers," considering that the majority
of military aid to Israel is used to buy weapons from the U.S. Moreover,
arms to Israel create more demand for weaponry in Arab states. According to
Zunes, "the Israelis announced back in 1991 that they supported the idea of
a freeze in Middle East arms transfers, yet it was the United States that
rejected it."

In the fall of 1993-when many had high hopes for peace-78 senators wrote to
former President Bill Clinton insisting that aid to Israel remain "at
current levels." Their "only reason" was the "massive procurement of
sophisticated arms by Arab states." The letter neglected to mention that 80
percent of those arms to Arab countries came from the U.S.
"I'm not denying for a moment the power of AIPAC [the American Israel Public
Affairs Committee], the pro-Israel lobby," and other similar groups, Zunes
said. Yet the "Aerospace Industry Association which promotes these massive
arms shipments . . . is even more influential." This association has given
two times more money to campaigns than all of the pro-Israel groups
combined. Its "force on Capitol Hill, in terms of lobbying, surpasses that
of even AIPAC." Zunes asserted that the "general thrust of U.S. policy would
be pretty much the same even if AIPAC didn't exist. We didn't need a
pro-Indonesia lobby to support Indonesia in its savage repression of East
Timor all these years." This is a complex issue, and Zunes said that he did
not want to be "conspiratorial," but he asked the audience to imagine what
"Palestinian industriousness, Israeli technology, and Arabian oil money . .
. would do to transform the Middle East. . . . [W]hat would that mean to
American arms manufacturers? Oil companies? Pentagon planners?"

"An increasing number of Israelis are pointing out" that these funds are not
in Israel's best interest. Quoting Peled, Zunes said, "this aid pushes
Israel 'toward a posture of callous intransigence' in terms of the peace
process." Moreover, for every dollar the U.S. sends in arms aid, Israel must
spend two to three dollars to train people to use the weaponry, to buy
parts, and in other ways make use of the aid. Even "main-stream Israeli
economists are saying [it] is very harmful to the country's future."

The Israeli paper Yediot Aharonot described Israel as "'the godfather's
messenger' since [Israel] undertake[s] the 'dirty work' of a godfather who
'always tries to appear to be the owner of some large, respectable
business."' Israeli satirist B. Michael refers to U.S. aid this way: "'My
master gives me food to eat and I bite those whom he tells me to bite. It's
called strategic cooperation." 'To challenge this strategic relationship,
one cannot focus solely on the Israeli lobby but must also examine these
"broader forces as well." "Until we tackle this issue head-on," it will be
"very difficult to win" in other areas relating to Palestine.

"The results" of the short-term thinking behind U.S. policy "are tragic,"
not just for the "immediate victims" but "eventually [for] Israel itself"
and "American interests in the region." The U.S. is sending enormous amounts
of aid to the Middle East, and yet "we are less secure than ever"-both in
terms of U.S. interests abroad and for individual Americans. Zunes referred
to a "growing and increasing hostility [of] the average Arab toward the
United States." In the long term, said Zunes, "peace and stability and
cooperation with the vast Arab world is far more important for U.S.
interests than this alliance with Israel."

This is not only an issue for those who are working for Palestinian rights,
but it also "jeopardizes the entire agenda of those of us concerned about
human rights, concerned about arms control, concerned about international
law." Zunes sees significant potential in "building a broad-based movement
around it."

The above text is based on remarks, delivered on. 26 January, 2001 by
Stephen . Zunes - Associate Professor of Politics and Chair of the Peace and
Justice Studies Program at San Francisco University


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The Cost of Israel to U.S. Taxpayers: True Lies About U.S. Aid to Israel

By Richard H. Curtiss

For many years the American media said that "Israel receives $1.8 billion in
military aid" or that "Israel receives $1.2 billion in economic aid." Both
statements were true, but since they were never combined to give us the
complete total of annual U.S. aid to Israel, they also were lies--true lies.

Recently Americans have begun to read and hear that "Israel receives $3
billion in annual U.S. foreign aid." That's true. But it's still a lie. The
problem is that in fiscal 1997 alone, Israel received from a variety of
other U.S. federal budgets at least $525.8 million above and beyond its $3
billion from the foreign aid budget, and yet another $2 billion in federal
loan guarantees. So the complete total of U.S. grants and loan guarantees to
Israel for fiscal 1997 was $5,525,800,000.

One can truthfully blame the mainstream media for never digging out these
figures for themselves, because none ever have. They were compiled by the
Washington Report on Middle East Affairs. But the mainstream media certainly
are not alone. Although Congress authorizes America's foreign aid total, the
fact that more than a third of it goes to a country smaller in both area and
population than Hong Kong probably never has been mentioned on the floor of
the Senate or House. Yet it's been going on for more than a generation.

Probably the only members of Congress who even suspect the full total of
U.S. funds received by Israel each year are the privileged few committee
members who actually mark it up. And almost all members of the concerned
committees are Jewish, have taken huge campaign donations orchestrated by
Israel's Washington, DC lobby, the American Israel Public Affairs Committee
(AIPAC), or both. These congressional committee members are paid to act, not
talk. So they do and they don't.

The same applies to the president, the secretary of state, and the foreign
aid administrator. They all submit a budget that includes aid for Israel,
which Congress approves, or increases, but never cuts. But no one in the
executive branch mentions that of the few remaining U.S. aid recipients
worldwide, all of the others are developing nations which either make their
military bases available to the U.S., are key members of international
alliances in which the U.S. participates, or have suffered some crippling
blow of nature to their abilities to feed their people such as earthquakes,
floods or droughts.

Israel, whose troubles arise solely from its unwillingness to give back land
it seized in the 1967 war in return for peace with its neighbors, does not
fit those criteria. In fact, Israel's 1995 per capita gross domestic product
was $15,800. That put it below Britain at $19,500 and Italy at $18,700 and
just above Ireland at $15,400 and Spain at $14,300.

All four of those European countries have contributed a very large share of
immigrants to the U.S., yet none has organized an ethnic group to lobby for
U.S. foreign aid. Instead, all four send funds and volunteers to do economic
development and emergency relief work in other less fortunate parts of the
world.

The lobby that Israel and its supporters have built in the United States to
make all this aid happen, and to ban discussion of it from the national
dialogue, goes far beyond AIPAC, with its $15 million budget, its 150
employees, and its five or six registered lobbyists who manage to visit
every member of Congress individually once or twice a year.

AIPAC, in turn, can draw upon the resources of the Conference of Presidents
of Major American Jewish Organizations, a roof group set up solely to
coordinate the efforts of some 52 national Jewish organizations on behalf of
Israel.

Among them are Hadassah, the Zionist women's organization, which organizes a
steady stream of American Jewish visitors to Israel; the American Jewish
Congress, which mobilizes support for Israel among members of the
traditionally left-of-center Jewish mainstream; and the American Jewish
Committee, which plays the same role within the growing middle-of-the-road
and right-of-center Jewish community. The American Jewish Committee also
publishes Commentary,one of the Israel lobby's principal national
publications.

Perhaps the most controversial of these groups is B'nai B'rith's
Anti-Defamation League. Its original highly commendable purpose was to
protect the civil rights of American Jews. Over the past generation,
however, the ADL has regressed into a conspiratorial and, with a $45 million
budget, extremely well-funded hate group.

In the 1980s, during the tenure of chairman Seymour Reich, who went on to
become chairman of the Conference of Presidents, ADL was found to have
circulated two annual fund-raising letters warning Jewish parents against
allegedly negative influences on their children arising from the increasing
Arab presence on American university campuses.

More recently, FBI raids on ADL's Los Angeles and San Francisco offices
revealed that an ADL operative had purchased files stolen from the San
Francisco police department that a court had ordered destroyed because they
violated the civil rights of the individuals on whom they had been compiled.
ADL, it was shown, had added the illegally prepared and illegally obtained
material to its own secret files, compiled by planting informants among
Arab-American, African-American, anti-Apartheid and peace and justice
groups.

The ADL infiltrators took notes of the names and remarks of speakers and
members of audiences at programs organized by such groups. ADL agents even
recorded the license plates of persons attending such programs and then
suborned corrupt motor vehicles department employees or renegade police
officers to identify the owners.

Although one of the principal offenders fled the United States to escape
prosecution, no significant penalties were assessed. ADL's Northern
California office was ordered to comply with requests by persons upon whom
dossiers had been prepared to see their own files, but no one went to jail
and as yet no one has paid fines.

Not surprisingly, a defecting employee revealed in an article he published
in the Washington Report on Middle East Affairs that AIPAC, too, has such
"enemies" files. They are compiled for use by pro-Israel journalists like
Steven Emerson and other so-called "terrorism experts," and also by
professional, academic or journalistic rivals of the persons described for
use in black-listing, defaming, or denouncing them. What is never revealed
is that AIPAC's "opposition research" department, under the supervision of
Michael Lewis, son of famed Princeton University Orientalist Bernard Lewis,
is the source of this defamatory material.

But this is not AIPAC's most controversial activity. In the 1970s, when
Congress put a cap on the amount its members could earn from speakers' fees
and book royalties over and above their salaries, it halted AIPAC's most
effective ways of paying off members for voting according to AIPAC
recommendations. Members of AIPAC's national board of directors solved the
problem by returning to their home states and creating political action
committees (PACs).

Most special interests have PACs, as do many major corporations, labor
unions, trade associations and public-interest groups. But the pro-Israel
groups went wild. To date some 126 pro-Israel PACs have been registered, and
no fewer than 50 have been active in every national election over the past
generation.

An individual voter can give up to $2,000 to a candidate in an election
cycle, and a PAC can give a candidate up to $10,000. However, a single
special interest with 50 PACs can give a candidate who is facing a tough
opponent, and who has voted according to its recommendations, up to half a
million dollars. That's enough to buy all the television time needed to get
elected in most parts of the country.

Even candidates who don't need this kind of money certainly don't want it to
become available to a rival from their own party in a primary election, or
to an opponent from the opposing party in a general election. As a result,
all but a handful of the 535 members of the Senate and House vote as AIPAC
instructs when it comes to aid to Israel, or other aspects of U.S. Middle
East policy.

There is something else very special about AIPAC's network of political
action committees. Nearly all have deceptive names. Who could possibly know
that the Delaware Valley Good Government Association in Philadelphia, San
Franciscans for Good Government in California, Cactus PAC in Arizona, Beaver
PAC in Wisconsin, and even Icepac in New York are really pro-Israel PACs
under deep cover?

Hiding AIPAC's Tracks

In fact, the congressmembers know it when they list the contributions they
receive on the campaign statements they have to prepare for the Federal
Election Commission. But their constituents don't know this when they read
these statements. So just as no other special interest can put so much "hard
money" into any candidate's election campaign as can the Israel lobby, no
other special interest has gone to such elaborate lengths to hide its
tracks.

Although AIPAC, Washington's most feared special-interest lobby, can hide
how it uses both carrots and sticks to bribe or intimidate members of
Congress, it can't hide all of the results.

Anyone can ask one of their representatives in Congress for a chart prepared
by the Congressional Research Service, a branch of the Library of Congress,
that shows Israel received $62.5 billion in foreign aid from fiscal year
1949 through fiscal year 1996. People in the national capital area also can
visit the library of the U.S. Agency for International Development (USAID)
in Rosslyn, Virginia, and obtain the same information, plus charts showing
how much foreign aid the U.S. has given other countries as well.

Visitors will learn that in precisely the same 1949-1996 time frame, the
total of U.S. foreign aid to all of the countries of sub-Saharan Africa,
Latin America and the Caribbean combined was $62,497,800,000--almost exactly
the amount given to tiny Israel.

According to the Population Reference Bureau of Washington, DC, in mid-1995
the sub-Saharan countries had a combined population of 568 million. The
$24,415,700,000 in foreign aid they had received by then amounted to $42.99
per sub-Saharan African.

Similarly, with a combined population of 486 million, all of the countries
of Latin America and the Caribbean together had received $38,254,400,000.
This amounted to $79 per person.

The per capita U.S. foreign aid to Israel's 5.8 million people during the
same period was $10,775.48. This meant that for every dollar the U.S. spent
on an African, it spent $250.65 on an Israeli, and for every dollar it spent
on someone from the Western Hemisphere outside the United States, it spent
$214 on an Israeli.

Shocking Comparisons

These comparisons already seem shocking, but they are far from the whole
truth. Using reports compiled by Clyde Mark of the Congressional Research
Service and other sources, freelance writer Frank Collins tallied for
theWashington Report all of the extra items for Israel buried in the budgets
of the Pentagon and other federal agencies in fiscal year 1993.Washington
Report news editor Shawn Twing did the same thing for fiscal years 1996 and
1997.

They uncovered $1.271 billion in extras in FY 1993, $355.3 million in FY
1996 and $525.8 million in FY 1997. These represent an average increase of
12.2 percent over the officially recorded foreign aid totals for the same
fiscal years, and they probably are not complete. It's reasonable to assume,
therefore, that a similar 12.2 percent hidden increase has prevailed over
all of the years Israel has received aid.

As of Oct. 31, 1997 Israel will have received $3.05 billion in U.S. foreign
aid for fiscal year 1997 and $3.08 billion in foreign aid for fiscal year
1998. Adding the 1997 and 1998 totals to those of previous years since 1949
yields a total of $74,157,600,000 in foreign aid grants and loans. Assuming
that the actual totals from other budgets average 12.2 percent of that
amount, that brings the grand total to $83,204,827,200.

But that's not quite all. Receiving its annual foreign aid appropriation
during the first month of the fiscal year, instead of in quarterly
installments as do other recipients, is just another special privilege
Congress has voted for Israel. It enables Israel to invest the money in U.S.
Treasury notes. That means that the U.S., which has to borrow the money it
gives to Israel, pays interest on the money it has granted to Israel in
advance, while at the same time Israel is collecting interest on the money.
That interest to Israel from advance payments adds another $1.650 billion to
the total, making it $84,854,827,200.That's the number you should write down
for total aid to Israel. And that's $14,346 each for each man, woman and
child in Israel.

It's worth noting that that figure does not include U.S. government loan
guarantees to Israel, of which Israel has drawn $9.8 billion to date. They
greatly reduce the interest rate the Israeli government pays on commercial
loans, and they place additional burdens on U.S. taxpayers, especially if
the Israeli government should default on any of them. But since neither the
savings to Israel nor the costs to U.S. taxpayers can be accurately
quantified, they are excluded from consideration here.

Further, friends of Israel never tire of saying that Israel has never
defaulted on repayment of a U.S. government loan. It would be equally
accurate to say Israel has never been required to repay a U.S. government
loan. The truth of the matter is complex, and designed to be so by those who
seek to conceal it from the U.S. taxpayer.

Most U.S. loans to Israel are forgiven, and many were made with the explicit
understanding that they would be forgiven before Israel was required to
repay them. By disguising as loans what in fact were grants, cooperating
members of Congress exempted Israel from the U.S. oversight that would have
accompanied grants. On other loans, Israel was expected to pay the interest
and eventually to begin repaying the principal. But the so-called Cranston
Amendment, which has been attached by Congress to every foreign aid
appropriation since 1983, provides that economic aid to Israel will never
dip below the amount Israel is required to pay on its outstanding loans. In
short, whether U.S. aid is extended as grants or loans to Israel, it never
returns to the Treasury.

Israel enjoys other privileges. While most countries receiving U.S. military
aid funds are expected to use them for U.S. arms, ammunition and training,
Israel can spend part of these funds on weapons made by Israeli
manufacturers. Also, when it spends its U.S. military aid money on U.S.
products, Israel frequently requires the U.S. vendor to buy components or
materials from Israeli manufacturers. Thus, though Israeli politicians say
that their own manufacturers and exporters are making them progressively
less dependent upon U.S. aid, in fact those Israeli manufacturers and
exporters are heavily subsidized by U.S. aid.

Although it's beyond the parameters of this study, it's worth mentioning
that Israel also receives foreign aid from some other countries. After the
United States, the principal donor of both economic and military aid to
Israel is Germany.

By far the largest component of German aid has been in the form of
restitution payments to victims of Nazi attrocities. But there also has been
extensive German military assistance to Israel during and since the Gulf
war, and a variety of German educational and research grants go to Israeli
institutions. The total of German assistance in all of these categories to
the Israeli government, Israeli individuals and Israeli private institutions
has been some $31 billion or $5,345 per capita, bringing the per capita
total of U.S. and German assistance combined to almost $20,000 per Israeli.
Since very little public money is spent on the more than 20 percent of
Israeli citizens who are Muslim or Christian, the actual per capita benefits
received by Israel's Jewish citizens would be considerably higher.

True Cost to U.S. Taxpayers

Generous as it is, what Israelis actually got in U.S. aid is considerably
less than what it has cost U.S. taxpayers to provide it. The principal
difference is that so long as the U.S. runs an annual budget deficit, every
dollar of aid the U.S. gives Israel has to be raised through U.S. government
borrowing.

In an article in the Washington Report for December 1991/January 1992, Frank
Collins estimated the costs of this interest, based upon prevailing interest
rates for every year since 1949. I have updated this by applying a very
conservative 5 percent interest rate for subsequent years, and confined the
amount upon which the interest is calculated to grants, not loans or loan
guarantees.

On this basis the $84.8 billion in grants, loans and commodities Israel has
received from the U.S. since 1949 cost the U.S. an additional
$49,936,880,000 in interest.

There are many other costs of Israel to U.S. taxpayers, such as most or all
of the $45.6 billion in U.S. foreign aid to Egypt since Egypt made peace
with Israel in 1979 (compared to $4.2 billion in U.S. aid to Egypt for the
preceding 26 years). U.S. foreign aid to Egypt, which is pegged at
two-thirds of U.S. foreign aid to Israel, averages $2.2 billion per year.

There also have been immense political and military costs to the U.S. for
its consistent support of Israel during Israel's half-century of disputes
with the Palestinians and all of its Arab neighbors. In addition, there have
been the approximately $10 billion in U.S. loan guarantees and perhaps $20
billion in tax-exempt contributions made to Israel by American Jews in the
nearly half-century since Israel was created.

Even excluding all of these extra costs, America's $84.8 billion in aid to
Israel from fiscal years 1949 through 1998, and the interest the U.S. paid
to borrow this money, has cost U.S. taxpayers $134.8 billion, not adjusted
for inflation. Or, put another way, the nearly $14,630 every one of 5.8
million Israelis received from the U.S. government by Oct. 31, 1997 has cost
American taxpayers $23,240 per Israeli.

It would be interesting to know how many of those American taxpayers believe
they and their families have received as much from the U.S. Treasury as has
everyone who has chosen to become a citizen of Israel. But it's a question
that will never occur to the American public because, so long as America's
mainstream media, Congress and president maintain their pact of silence, few
Americans will ever know the true cost of Israel to U.S. taxpayers.

------------------
Richard Curtiss, a retired U.S. foreign service officer, is the executive
editor of the Washington Report on Middle East Affairs.

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screeds are unwelcomed. Substance�not soap-boxing�please!  These are
sordid matters and 'conspiracy theory'�with its many half-truths, mis-
directions and outright frauds�is used politically by different groups with
major and minor effects spread throughout the spectrum of time and thought.
That being said, CTRLgives no endorsement to the validity of posts, and
always suggests to readers; be wary of what you read. CTRL gives no
credence to Holocaust denial and nazi's need not apply.

Let us please be civil and as always, Caveat Lector.
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