U.S. to Withhold Some Funds from Israel; because of its settlement activities in Palestinian areas

Reuters ^ | 09-15-03

[Brian S]

Mon September 15, 2003 04:25 PM ET

WASHINGTON (Reuters) - The Bush administration said on Monday it planned to withhold some funds from Israel because of its settlement activities in Palestinian areas.

The deductions would come from a $9 billion package of U.S. loan guarantees to help Israel weather a deep recession and fiscal crisis.

But administration officials said they have yet to decide whether to penalize Israel for building a fence through the West Bank. Congressional aides doubted the White House would carry out that threat.

Under legislation authorizing the loan guarantees, the United States would deduct from the face value of the loan guarantees an amount equal to any Israeli spending on settlement activities in Palestinian areas.

An administration official said those deductions were consistent with past U.S. policies. He did not specify an amount that would be deducted or when it would take place.

"We can't preclude any deductions (for fence construction). That is still a matter for discussion," the official added.

President Bush has called the fence "a problem" because it makes it hard to develop a contiguous Palestinian state.

Israel and its allies in Congress argue that expenditures on the security fence should not be deducted from the loan guarantees.

Israel wants the barrier -- in sections a concrete wall and in others metal fencing -- to keep out Palestinian suicide bombers. Palestinians describe it as a new "Berlin Wall" that grabs territory they want to be part of an independent state in the West Bank and Gaza Strip.

Israel and its allies in Congress argue that expenditures on the security fence should not be deducted from the loan guarantees.

Bush on Monday designed Secretary of State Colin Powell to oversee the loan program.

[Moose4]

*bangs his head against the wall in frustration*

}:-)4

[JohnGalt]

Why doesn't Israel say no thanks to all $9 billion so they can do what they want?

[Beck_isright]

Of course we don't withhold funds from Yessir Arafart's PA because they blow up 8 year old children. Another reason why I won't vote for W and will sit on the sidelines. His administration talks out of both sides of their mouth.

[cardinal4]

Of course we don't withhold funds from Yessir Arafart's PA because they blow up 8 year old children. Another reason why I won't vote for W and will sit on the sidelines. His administration talks out of both sides of their mouth.

*Sigh* Its getting harder and harder to defend the Bush admin...

[swarthyguy]

Like Father, Like Son?

[yonif]

As a poster has pointed out that while we withold funds from Israel because it is working to protect itself, we continue to send funds to the terror entity which is causing Israel to have to build this fence and initiate other counter-terrorism operations.

[dmanLA]

Utterly stupid.

Bush is completely lost in regards to Israel.

[Paved Paradise]

This is really ticking me off. I am ashamed of our government for doing this. Ashamed.

[Brian S]

Like Father, Like Son?

In many, many ways... :/

[ArGee]

Perhaps the most simple solution would be for Israel to annex those areas where the settlements are occurring. In that way they would not be settling in "Palestinian" areas.

I gotta admit that I am stunned. It appears that President Bush is not playing politics, but is actually working to support a terrorist Palestinian state. He's not working to support a Palestinian state - I would be in favor of that. But under current policy it would be a terrorist Palistinian state. I can't even begin to comprehend that.

Shalom.

[mewzilla]

Why doesn't Israel say no thanks to all $9 billion so they can do what they want?

Jeez, what did Arafat ever do to you?

[nkycincinnatikid]

EXACTLY. When will they ever learn.

[Beck_isright]

"*Sigh* Its getting harder and harder to defend the Bush admin..."

I quit trying. I did for almost 3 years. Went to Tallahasee and yelled at the Florida Supreme Court. And this is how we are rewarded? A repeat performance, just like his dad? It's pathetic. And if he were serious about the alleged 'WAR ON TERROR' then the PLO would be on the list and Yassir and Co. wouldn't get a dime and any nation which gave money to them would have trade sanctions imposed against them. But W is not serious. This State Department under comrade Powell is no different than those that were under Klintoon or Carter. And it's going to end up killing more innocent Americans, just like 9-11.

[Brian S]

Who has the list of tragic weather events the US has suffered after we have taken actions against the interests of Israel?

Read it a couple of times here...sobering "coincidences".

[JohnGalt]

Thought I would ping you to this 'conservative' (chuckle-chuckle) thread.

[LarryM]

It is impossible to defend the craven actions of the Bush Administration. I'll be staying home in Nov. 2004. I despised his daddy and am starting to see that the son is not much different.

[swarthyguy]

They've learnt very well.

They do what the Saudis demand.

[swarthyguy]

Watch out for Hurricane "allah"Bel!

[nkycincinnatikid]

Bush IS stupid , he truly doesn't get it does he.