Shocking Comparisons
These comparisons already seem shocking, but they are far from the whole truth. Using reports compiled by Clyde Mark of the Congressional Research Service and other sources, freelance writer Frank Collins tallied for the
Washington Report on Middle East Affairs, all of the extra items for Israel buried in the budgets of the Pentagon and other federal agencies in fiscal year 1993.
Washington Report on Middle East Affairs,news editor Shawn Twing did the same thing for fiscal years 1996 and 1997.
They uncovered $1.271 billion in extras in FY 1993, $355.3 million in FY 1996 and $525.8 million in FY 1997. These represent an average increase of 12.2 percent over the officially recorded foreign aid totals for the same fiscal years, and they probably are not complete. It's reasonable to assume, therefore, that a similar 12.2 percent hidden increase has prevailed over all of the years Israel has received aid.
As of Oct. 31, 1997 Israel will have received $3.05 billion in U.S. foreign aid for fiscal year 1997 and $3.08 billion in foreign aid for fiscal year 1998. Adding the 1997 and 1998 totals to those of previous years since 1949 yields a total of $74,157,600,000 in foreign aid grants and loans. Assuming that the actual totals from other budgets average 12.2 percent of that amount, that brings the grand total to $83,204,827,200.
But that's not quite all. Receiving its annual foreign aid appropriation during the first month of the fiscal year, instead of in quarterly installments as do other recipients, is just another special privilege Congress has voted for Israel. It enables Israel to invest the money in U.S. Treasury notes. That means that the U.S., which has to borrow the money it gives to Israel,
pays interest on the money it has granted to Israel in advance, while at the same time Israel is
collectinginterest on the money. That interest to Israel from advance payments adds another $1.650 billion to the total, making it
$84,854,827,200. That's the number you should write down for total aid to Israel. And that's $14,346 each for each man, woman and child in Israel.
It's worth noting that that figure does not include U.S. government loan guarantees to Israel, of which Israel has drawn $9.8 billion to date. They greatly reduce the interest rate the Israeli government pays on commercial loans, and they place additional burdens on U.S. taxpayers, especially if the Israeli government should default on any of them. But since neither the savings to Israel nor the costs to U.S. taxpayers can be accurately quantified, they are excluded from consideration here.
Further, friends of Israel never tire of saying that Israel has never defaulted on repayment of a U.S. government loan. It would be equally accurate to say Israel has never been required to repay a U.S. government loan. The truth of the matter is complex, and designed to be so by those who seek to conceal it from the U.S. taxpayer.
Most U.S. loans to Israel are forgiven, and many were made with the explicit understanding that they would be forgiven before Israel was required to repay them. By disguising as loans what in fact were grants, cooperating members of Congress exempted Israel from the U.S. oversight that would have accompanied grants. On other loans, Israel was expected to pay the interest and eventually to begin repaying the principal. But the so-called Cranston Amendment, which has been attached by Congress to every foreign aid appropriation since 1983, provides that economic
aid to Israel will never dip below the amount Israel is required to pay on its outstanding loans. In short, whether U.S. aid is extended as grants or loans to Israel, it never returns to the Treasury.
Israel enjoys other privileges. While most countries receiving U.S. military aid funds are expected to use them for U.S. arms, ammunition and training, Israel can spend part of these funds on weapons made by Israeli manufacturers. Also, when it spends its U.S. military aid money on U.S. products, Israel frequently requires the U.S. vendor to buy components or materials from Israeli manufacturers. Thus, though Israeli politicians say that their own manufacturers and exporters are making them progressively less dependent upon U.S. aid, in fact those Israeli manufacturers and exporters are heavily subsidized by U.S. aid.
Although it's beyond the parameters of this study, it's worth mentioning that Israel also receives foreign aid from some other countries. After the United States, the principal donor of both economic and military
aid to Israel is Germany.
By far the largest component of German aid has been in the form of restitution payments to victims of Nazi attrocities. But there also has been extensive German military assistance to Israel during and since the Gulf war, and a variety of German educational and research grants go to Israeli institutions. The total of German assistance in all of these categories to the Israeli government, Israeli individuals and Israeli private institutions has been some $31 billion or $5,345 per capita, bringing the per capita total of U.S. and German assistance combined to almost $20,000 per Israeli. Since very little public money is spent on the more than 20 percent of Israeli citizens who are Muslim or Christian, the actual per capita benefits received by Israel's Jewish citizens would be considerably higher.