Israel agrees to divert part of U.S. foreign aid to Jordan

JERUSALEM, June 15 (JTA) — Israel has decided to give Jordan $50 million from the more than $3 billion in annual aid it receives from the United States, Israeli officials said this week. After two months of negotiations, Israel informed American officials June 12 that it was willing to forego the $50 million a year for the next five years. The decision was taken as a goodwill gesture toward Jordan, and as an attempt to bolster the Jordanian regime prior to parliamentary elections scheduled for November, the Israeli daily Ha’aretz reported. Israel receives $1.8 billion in annual military aid from the United States and $1.2 billion in economic aid. It also receives other funding, such as for refugee resettlement, making the total more than $3 billion annually. Israel’s decision marks the first time that the Jewish state has been willing to give up some of its U.S. aid for the benefit of an Arab country. American officials, quoted by Ha’aretz, said the terms of the “gentlemen’s agreement” called for Israel to return $50 million to Washington this year and next. The first payment is to be made before the American fiscal year ends Sept. 30. For the three subsequent years, the $50 million would either be returned or deducted from the $1.2 billion in economic aid. Israeli officials prefer that those funds be returned to the United States, rather than be deducted before payment, out of concern that it might set a negative precedent for those American officials who are calling for cuts in aid to Israel.