U.S. Aid to Israel To Be Phased Out

WASHINGTON (AP) â€” U.S. economic aid to Israel, the most any country receives, will be phased out by 2008 under an agreement signed Friday at the State Department. <br><br>Half of the assistance will

Friday, January 19th 2001, 12:00 am

By: News On 6

WASHINGTON (AP) â€” U.S. economic aid to Israel, the most any country receives, will be phased out by 2008 under an agreement signed Friday at the State Department.

Half of the assistance will be recovered by Israel in the form of military aid, which also is the most any country receives from the United States.

The agreement was signed by Ambassador David Ivry of Israel and Assistant Secretary of State Edward Walker in Walker's office.

``It reflects the unshakable commitment of the United States to Israel's security and to maintaining Israel's qualitative edge,'' Ivry said. ``Only a strong Israel can make peace.''

Israel volunteered reduction and ultimate elimination of U.S. economic aid, and the cutback from $1.2 billion a year began in 1999, with $120 million trimmed. The reduction will continue at that pace until all economic aid is eliminated by 2008.

At the same time, U.S. military aid will be boosted $60 million a year until it reaches $2.4 billion by 2008. Most of the U.S. military aid is spent in contracts with American munitions companies.