US to trim loan guarantees for Israel ( 2003-11-26 15:13) (Agencies)
The United States will deduct 289.5 million
dollars this year from loan guarantees currently available to Israel over
disagreements over Israeli activity in Palestinian territories, the Israeli
Embassy in Washington announced.
The embassy said in a brief statement that the amount was "suggested" by
Israel.
"Israel accepts that the United States does not view some of the Israeli
activities to date in parts of Judea, Samaria and Gaza as being consistent with
US policy," the statement reads.
Israeli Embassy in Washington, DC
[AFP/File]
"Israel understands that the US
should not finance directly, or indirectly, activities with which it does not
agree."
Israel "therefore suggested that the US deduct the agreed sum of 289.5
million dollars from the 3 billion dollars in loan guarantees currently
available."
An Israeli diplomat told AFP the decision was taken Tuesday following a
meeting in Washington between US national security adviser Condoleezza Rice, and
Dov Weisglass, Israeli Prime Minister Ariel Sharon's chief of staff.
White House national security spokesman Sean McCormack said the United States
welcomed what he also characterized as Israel's "suggestion" that the loan
guarantees be reduced because of the disagreements.
"This suggestion acknowledges US policy concerns and US law regarding
activities in the West Bank and Gaza and is a reflection of close and continuing
consultations between our two governments," he told AFP.
During a speech in London last week, US President George W.
Bush publicly criticized Sharon's hardline policies in the West Bank and
Gaza Strip, after behind the scenes pressure failed to bring results.
Bush said Israel must "freeze settlement construction, dismantle unauthorized
outposts, end the daily humiliation of the Palestinian people and not prejudice
final negotiations with the placement of walls and fences," in reference to the
Israeli separation barrier being built across the West Bank.
In addition to the banking guarantees, Israel in 2003 got one billion dollars
from Washington following the war in Iraq, money that came on top of the annual
US assistance of almost 3 billion dollars a year, which includes 2.1 billion in
military aid.
The 289.5 million dollar figure is the amount Washington has estimated will
fund building in the occupied territories -- including building parts of
Israel's "security barrier" deep within the West Bank.
For Israel, the structure is a separation barrier designed to prevent
infiltrations by Palestinian extremists intent on carrying out terror attacks in
Israel.
Palestinians regard the barrier as an attempt to pre-empt the borders of
their future state and seize some of their most fertile land.
Chief Palestinian negotiator Saeb Erakat has urged Bush to "force Israel to
immediately stop the construction of the apartheid wall."
In October, the United Nations General Assembly overwhelmingly called for a
halt to the project.
Israel is obliged to dismantle all outposts under the terms of the US-backed
Middle East "roadmap" peace plan which also stipulates a complete freeze on
settlement activity.
The continuing settlement activity has prompted accusations from the
Palestinians that the Israelis are killing off the "roadmap" and the chances of
a two-state solution to the conflict.
Israel can, in theory, still receive up to 3 billion dollars in loan
guarantees in 2004, but the government of Ariel Sharon has any for the moment
claimed only for 1.6 billion dollar, the State Department said in
September.
