U.S. to Cut Aid to Israel Over Settlement Activity

[vierundzwanzig]

By THE ASSOCIATED PRESS


Filed at 3:14 p.m. ET

WASHINGTON (AP) -- The United States will reduce loan guarantees to Israel for expanding construction of homes for Jews on the West Bank, the State Department announced Tuesday.

Under law, the guarantees may only support activities in areas Israel held before the 1967 Mideast war, deputy spokesman Adam Ereli said.

The construction is ``inconsistent'' with the objectives and understandings reached between the United States and Israel, he said.

The amount of loan guarantees to be withheld is being negotiated with Israel and will be based on what Israel is spending on settlement activity, Ereli said.

http://www.nytimes.com/aponline/international/AP-Mideast-US.html?ex=1064742080&ei=1&en=99b5ca2e41ffaa7e

[vierundzwanzig]

1. Good news

for once. Let's see how much they knock off the top.

[DuctapeFatwa]

2. U.S. won`t deduct money from 1st installment: Haaertz ticker

Israeli official: U.S. won`t deduct money spent on fence, settlements from first installment of $9B. loan guarantee
http://www.haaretzdaily.com/hasen/objects/pages/ShowTickers.jhtml

COmment: Once they get the "gonna cut" story out and about, by the time the 2nd installment is due, Sharon can call a TV crew, go move an empty U-haul truck from someplace, then US can announce that they have decided not to cut funds because of Israel's cooperative attitude and removal of "outposts."

[Jim Sagle]

4. Kewl!

[vierundzwanzig]

5. I tend to agree with you

Nonetheless this also sends a message to the international community (Europe) to do the same. One way or another it is going to cost Israel. I do not believe there is some sort of under-the-covers agreement but a serious malcontent on behalf of the Bush administration.

In fact, they are taking a big risk with the Jewish community here in the U.S. which may very well withdraw their support for the administration, no matter whether this deal is for real or not.

[vierundzwanzig]

6. Note the wording:

Israeli official: U.S. won`t deduct money spent on fence, settlements from first installment of $9B. loan guarantee.

--------

Sounds to me like the Sharon and his cronies want to make sure they do not piss their voters off. Who is this official?

[papau]

7. This settlement "aid cut" is real - the Fence - if scaled back to Taba

will not result in an aid cut - that means effectively we sign off on the 6% needed for a few settlements within the Wall now being built - and that the "eastern wall" never gets built.

I like the decision.

I hope folks that defend Israel in the US understand that this is actually in the best interest of Israel - at least in my opinion it is in their best interests.

:-)

[Evil_Dewers]

3. Slap on...

wrist...

How about cutting off real money ($4 - $6 billion in foreign aid this year alone) instead of threatening to reduce loan guarantees? Of course, we all know that will never happen.

The American Israel/Jewish lobby is screwing this country--why the fuck should the US borrow money from us taxpayers so that we can loan that borrowed money to Israel at a lesser interest rate than we charge ourselves?

In other words, the US is borrowing money at a higher interest rate than it is charging Israel for that borrowed money.

Would you borrow money at a 5% interest rate and loan that money to someone at a 2% interest rate? Isn't our deficit and national debt high enough already? Apparently not.