WE ARE SUPPORTING ISRAEL'S WAR WITH BIG BUCKS-BILLIONS!

April 1, 2003
To: Officers, Rabbis, Key ContactsFrom: Richard B. Stone, ChairmanBetty Ehrenberg, Director, International and Communal AffairsRe: Loan Guarantees and Supplemental Anti-Terror Aid to IsraelUrge Congress to Support Aid to Israel
The House and Senate recently passed the FY03 Omnibus Appropriations bill. Included in the bill is the FY03 Foreign Operations bill, which funds and earmarks the President’s request for aid to Israel ($2.1 billion military, $600 million economic) and refugee settlements in Israel ($60 million). The bill also contains landmark language codifying the conditions President Bush laid out in his June 24th speech for Palestinian statehood and a provision for requiring a GAO report on UNRWA-related activities. Not included in the bill because of budgetary constraints and the anticipation of a much larger request is $200 million in supplemental aid to Israel that was part of the original House bill.
Since Israel is today facing an unprecedented crisis, both economically and militarily, President Bush has requested Congress to approve a package of $9 billion in loan guarantees for Israel and a $1 billion supplementary package in anti-terror aid. It is important that we urge our members of Congress to support providing Israel the necessary resources to overcome the current overwhelming economic and military crisis.
Urgent Action Necessary (BY BEEBEE: NOW THIS IS AT THE SAME TIME WE HAVE STATES IN THE UNITED STATES SUCH AS NEW YORK WANTING MORE MONEY FOR HOMELAND SECURITY; AND AT THE SAME TIME WE CANNOT AFFORD TO BUILD A BORDER FENCE BETWEEN US AND MEXICO!!!!!)
Urge Congress to:
Support Israel’s expected supplemental package of $9 billion in loan guarantees and $1 billion in anti-terror aid and support the annual foreign aid request ($2.64 billion).
Talking Points:
Israel is today facing an unprecedented crisis both economically and militarily that could have a significant impact on its future security and stability. As a result, Israel has come to the United States to request a special multi-year aid package consisting of loan guarantees and military assistance to help overcome this dual crisis. At present, negotiations are taking place with the Administration and a request, when it is submitted, is expected to be included as part of an Iraqi war supplemental funding bill in the coming weeks.

The Israeli economy is now in a deep recession, facing the third year in a row of negative economic growth. Israel’s per capita GDP has shrunk by 6% in the past two years. The Palestinian war of terrorism, now in its third year, has had a powerful effect on the economy: Israel’s tourism industry has suffered a net loss of $2 billion per year; foreign investment is way down; the unemployment rate is now in excess of 10%. (BY BEEBEE: PROOF THAT ISRAEL IS NOT A DEMOCRACY, AS IT IS SOCIALISM THAT IS FINANCED BY THE TAXPAYERS OF THE UNITED STATES).

Israel is incurring huge additional costs in fighting the war on terror, in addition to preparing for a possible attack from Iraq and the increasing threat from Iranian-armed Hezbollah. Israel has had to increase the intensity of military activities, including expanding the activities of army reserves by 400%, intensifying intelligence operations, and constructing a costly barrier along Israel’s so-called “Seam Line” to reduce terrorist infiltration. Israel is also incurring tremendous costs in preparing itself to defend against the possible attack from Iraq. These homeland defense preparations include gas masks and vaccines, placing missile and air defense units on heightened alert, and boosting the readiness of the Israeli Air Force operations to almost 100%. As a result, Israel’s defense burden has increased from 8.4% of GDP to 10.2% - more than three times ahead of the United States. Because of limited resources, Israel has also had to divert funds from critical long-term defense modernization needs affecting Israel’s defense against future threats from neighboring countries who are accelerating their development of weapons of mass destruction.

The loan guarantees Israel is requesting ($9 billion) are an inexpensive, low-risk way for the United States to help Israel borrow money at affordable rates and for longer periods of maturity. Israel has agreed to pay the budget scoring costs associated with the guarantees, so there would be no cost to the U.S. taxpayer. The guarantees would reduce the other pressure on domestic interest rates, free up funds for investment in the most productive sectors of Israel’s economy, and restore international confidence in the economy, thus helping Israel dig its way out of this recession. The Israeli economy has basically a sound base, its external debt is manageable, and its foreign currency reserves stable. Israel has also recently instituted numerous economic reforms and severe budget cuts to help ease the crisis.

The supplemental military aid request ($1 billion) will help Israel meet the cost of this unprecedented array of security challenges, while ensuring that future defense needs are not compromised. Among the items requested are counter-terror weapons assistance, protected command posts, advanced missiles, and armor-protected vehicles.
Write or call your Representatives and Senators at:
Representative ________________U.S. House of RepresentativesWashington, D.C. 20515Tel: (202) 225-3121(Ask for the name of your Representative)
Senator ___________________United States SenateWashington, D.C. 20510Tel: (202) 224-3121(Ask for the name of your Senator)
RBSBE