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Aid decision withheld Original Source Link: (May no longer be active)    http://story.news.yahoo.com/news?tmpl=story2&u=/ap/20030107/ap_on_re_mi_ea/us_israel http://story.news.yahoo.com/news?tmpl=story2&u=/ap/20030107/ap_on_re_mi_ea/us_israel Middle East - AP U.S. Withholds Decision on Israeli Aid Tue Jan 7, 3:58 PM ET By BARRY SCHWEID, AP Diplomatic Writer WASHINGTON - The Bush administration withheld a decision Tuesday on Israel's request for $8 billion in loan guarantees and $4 billion in special assistance. The request is based on the costs of conflict with the Palestinians and preparations for possible attack by Iraq. An Israel delegation met Monday with National Security Council officials, and Amos Yaron, director-general of Israel's defense ministry, talked on Tuesday to Deputy Secretary of State Richard Armitage. The talks ended without a decision but with U.S. assurances to the Israelis that the request would be considered, said Israeli sources on condition of anonymity. "I wouldn't expect us to be able to react that quickly to specific dollar figures or requests. So we've had discussions with the Israelis, and I'm sure we'll continue to discuss it with them, as we consider what we can do," State Department spokesman Richard Boucher said. With President Bush (news - web sites) weighing the option of war with Iraq to force its disarmament, Israel is bracing for Iraqi attacks with costly preparations straining a budget already weighed down with the expense of trying to counter an ongoing Palestinian offensive. Iraq fired Scud missiles at Israel in the 1990 Persian Gulf war (news - web sites) but Israel held its fire at the request of the United States. This time, Bush has expressed an understanding of Israel's right to defend itself and Prime Minister Ariel Sharon (news - web sites) has indicated Israel would retaliate. This year, Israel is receiving $2.7 billion in U.S. aid, of which $2.1 billion is military assistance and $600 million economic help. Israel is the largest recipient of U.S. aid. Israel probably would receive additional aid if it reached a settlement with the Palestinians, but the Bush administration agreed last year to put its mediation on hold until after Israel's elections. Turkey and Jordan also are expected to ask for special assistance in the event of a war with Iraq Ñ on the same general theory that their budgets are strained in preparing for a possible U.S.-Iraqi war.

Aid decision withheld Israel aid shink 17m Israel asks 10b Israel requests 15b { January 3 2003 } Opposes aid Postpones aid talks { February 11 2003 } Us israel aid { April 14 2002 } Files Listed: 7

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