US 'to withhold funds' over Israeli actions

Financial Times ^ | 9/16/03 | Guy Dinmore in Washington, Sharmila Devi in Jerusalem and Mark Turner at the United Nations

[truthandlife]

The US intends to withhold part of a $9bn loan guarantee package for Israel because of its actions in the occupied Palestinian territories, US officials said on Monday.

US officials refused to say how much would be withheld from the total approved by Congress to help Israel get through its economic crisis. If the amount proved to be significant then the Bush administration, faced with a collapse of the Middle East "road map", would be taking the first concrete action to express its disapproval of certain actions by Israel.

Officials would not specify why the US intended to make the financial deduction. However, the US has criticised Israel's security cabinet for threatening to "remove" Yassir Arafat, its failure to halt expansion of Jewish settlements in the West Bank and Gaza, and the government's construction of a security wall through Palestinian territories.

John Snow, US Treasury secretary, on Monday began in Israel a 10-day visit to the region before attending meetings of the World Bank and International Monetary Fund in Dubai. Officials said he would not meet Ahmed Qurei, the Palestinian prime minister-designate. Mr Qurei, also known as Abu Ala, would form a government by the end of the week, Abbas Zaki, a member of the dominant Fatah faction, told Israel Radio.

Silvan Shalom, Israel's foreign minister, said on Monday it was not the official policy of the Israeli government to kill Mr Arafat. But on Sunday, Ehud Olmert, deputy prime minister, said that killing him was "definitely one of the options".

UN Security Council ambassadors discussed proposals on Monday evening for a resolution that would demand Israel desist from deporting Mr Arafat or threatening his safety, while expressing concern at the increase in extra-judicial executions and suicide bombings.

The move came after a day-long debate in which many countries warned against deporting or killing Mr Arafat, but Israel remained defiant.

"The Security Council has never found the time to find out how to stop the most vicious attacks by Palestinians on Israelis," said one Israeli government official. "This raises a big question mark over its ability to play a role in an Israeli political decision to remove a terrorist from the region."

The Syrian-sponsored resolution might come to a vote on Tuesday, diplomats said. John Negroponte, US ambassador to the UN, said there was no need for such a resolution.

Mr Negroponte said any new UN resolution would need an explicit condemnation of Hamas, Palestinian Islamic Jihad and the al-Aqsa Martyrs' Brigades, and call for dismantling the infrastructure which supports them. "We would not support any resolution that evades the specific threat" posed by these groups, he said.

Palestinians have flocked to express solidarity at Mr Arafat's wrecked compound in Ramallah, which the 74-year-old president has not left for more than a year out of fear of being refused re-entry by Israel.

Terje Roed Larsen, UN Middle East envoy, said that more Israeli concessions were essential to creating an atmosphere where the peace process could work.

"Mr Arafat is democratically elected and, as such, the legitimate leader of the Palestinians," he said.

[truthandlife]

Expect bad things to happen to the U.S. in the coming days. President Bush, your re-election might be numbered.

[tomahawk]

Catering to the Islamofascists helps Bush in no manner. Politically as well as substantively bad decision.

[JohnGalt]

Why doesn't Israel refuse all $9 billion so that they can do what they want?

[truthandlife]

Unfortunately because their economy is in shambles. It makes me sick that we are puting a gun to Israel's head on this one. It is so hypocritical.

[dagar]

His (and by extension our) thumb on Israel is hypocritical -- we can destroy terrorist, but they aren't allowed? Add that to TSA (Norm M.), immigration policy (lack of), borders and entitlements.

Who needs democrats?

[JohnGalt]

If this money is nothing more than a welfare payment, it won't help the economy, it will just make it that much harder to fix.

The Israeli's as a country are better off with fewer foreign dollars propping up their socialist economy, no matter what the justification, no?

[theFIRMbss]

>Catering to the Islamofascists helps Bush in no manner.

Then why does this smart
guy, surrounded by smart guys,
still do appeasement?!

America saw
Palestinians dancing
in the street after

the WTC thing.
You tell me: Why does Bush still
appease this people?

[Alouette]

US won't cut loan package for settlement building - yet
By THE JERUSALEM POST INTERNET STAFF



The United States will not deduct money the government spends on Jewish settlements and the security fence from the first $1.6 billion of a $9 billion loan guarantee package, a government official said Tuesday.

The official, speaking on condition of anonymity, said deductions for settlement spending could come from later installments. The official spoke as U.S. Treasury Secretary John Snow visited the region.

Questions about cutting the guarantees by the amount being spent to build a security fence that travels outside the 1967 Green Line did not arise.

"There is nothing about the fence," the official said of the loan guarantee discussions.

Ariel Mayor Ron Nachman today sent a letter to government and cabinet officials, including Prime Minister Ariel Sharon urging him to resist US pressure to keep the security fence away from West Bank communities such as Ariel.

"What is the meaning of this American pressure" on Israel, Nachman said.

Snow met Monday night with Palestinian Finance Minister Salam Fayad and the Palestinian economy and planning ministers. On Tuesday, he was to hold talks with Sharon and Finance Minister Binyamin Netanyahu.

Sharon was to tell Snow that Israel needs $9 billion in U.S. loan guarantees to promote growth, said a government official who spoke on condition of anonymity.

Early Tuesday, the Cabinet approved a NIS 217 billion ($48.24 billion) budget for 2004 that cuts spending by NIS 10 billion ($2.2 billion).

The United States had threatened to reduce the loan guarantee package by the amount Israel spends on a security barrier that cuts through territories outside the 1967 Green Line. In the 1990s, the United States deducted money the government spent on settlement construction from loan guarantees.

The Israeli official said deductions would again be made for settlement spending.

"When we went this year and asked for the $9 billion in loan guarantees, they (American officials) said the same conditions (as in the 1990s) will apply," the official said.

The official said there would be no deduction from the upcoming first installment of $1.6 billion in guarantees, only from future installments, and the cuts were not related to the 600-kilometer West Bank barrier, of which 150 kilometers have so far been completed.

(Associated Press contributed to this report.)

[truthandlife]

When was the date on that one.

[mommadooo3]

Sounds like it's time for a call to arms in the Christian world....send donations to Israel. (sure, it won't be as much as the feds give 'em, but we can STILL show our support)

And after the donations are sent, send a copy of the check/MO/money transfer to the White House so BUSH knows.(he MIGHT get a clue)

[StolarStorm]

Yikes. What the hell is going on in DC?

[Alouette]

When was the date on that one.

It's today's edition

[over3Owithabrain]

You tell me: Why does Bush still appease this people?

Oil and the Bush buddies in the House of Saud

[montag813]

SHAME! PERFIDY! DISGRACE!

The enitre Congressional leadership, party rank-and-file, and Christian Conservative base opposes you on this Mr President.

I notice there is not a single dollar being withdrawn from the $300 MILLION in CASH (not "guarantees") we have been giving to the "Palestinian Authorities" since June. With Arafat in full command, where do Bush/Powell/Rice think this money is going? To the local Boys and Girls Club of Ramallah?

Have we gone insane? Under the Patriot Act, technically OUR OWN GOVERNMENT is guilty of funding terrorism, and the Treasury would be required to confiscate its funds! This is utter madness!

[Diogenesis]

Beware Knee-pad Terroristophiles

[truthandlife]

Sounds like it's time for a call to arms in the Christian world....send donations to Israel. (sure, it won't be as much as the feds give 'em, but we can STILL show our support)

And after the donations are sent, send a copy of the check/MO/money transfer to the White House so BUSH knows.(he MIGHT get a clue)

Sound like you have a great idea!

[risk]

Actually, it's the Muslim extremists who want a religious war, not us. The real fight is between modernity and superstition, between freedom of conscience and state-mandated religion. Putting it in Christian terms just plays into their hands, and even sets us up to be criticized the same way. And their propaganda machines are in full swing to push us in that direction: http://www.freerepublic.com/focus/f-news/983300/posts

[cksharks]

The US might be the biggest supporter of Israel but if I were them I would jst say go screw yourself. I then would come out and say publically that the next bombing in Israel brings a 2000pd bomb on the headquaters of arafat. The next brings a couple on the gaza strip. The next a small nuke on syria. The next brings one on iran. The next on egypt.Get the Picture. You will Fight a nuke war on us or leave us the hell alone. Sounds harsh but it will show who is in control.