In 1992, I set up the "jeans forum" in the Foreign Ministry. We would meet once a month at the Van Leer Institute, sitting at a round table, breaking the hierarchical structure that characterizes every foreign ministry. There were a dozen of us, young and relatively young, and none of the other ministry employees knew about the existence of the forum, which was formed to reexamine issues that were deemed off-limits.
One of the issues discussed was the possibility of an Israeli initiative to gradually stop the receipt of American aid. I was amazed that nearly all the forum participants supported the idea enthusiastically, but that agreement did not lead to any change in policy.
Follow Israel Hayom on Facebook and Twitter
When Benjamin Netanyahu was elected prime minister in 1996, it turned out that he had also entertained the idea and reached an agreement to gradually cancel the economic assistance, which at the time comprised $1.2 billion, and transfer half of it to the military package, which stood at an additional $1.8 billion. Later, the US Congress decided to give Israel $3 billion in military aid, and the last deal with the Obama administration raised that to nearly $4 billion a year for 10 years.
American aid to Israel accounts for 55% of the aid the US distributes to the world. Many Americans are astonished that Israel, a wealthy state, gets a relatively large amount. One of the explanations for this is that we are not members of NATO and therefore must defend ourselves and acquire our own military equipment, but in our hearts, we know that the main reason we continue to ask for aid is that it's hard to wean ourselves off it.
It started in 1949, a few months after the state was founded. American aid, millions of dollars' worth, was earmarked to help Israel cope with mass immigration. At first, it was a loan, but most of the money was never returned after various US administrations let it go. Starting in 1958, we started to receive American defense aid – bit by bit, in the form of grants – which became permanent after the 1967 Six-Day War, when France cut off its special defense relations with us. Aid peaked after Israel signed the peace treaty with Egypt.
Prior to the initiation of the big economic plan of July 1985, then-Prime Minister Shimon Peres struck a deal with Ronald Reagan's secretary of state, George Shultz, for the US to give Israel a regular yearly grant of $3 billion, mostly for security purposes (particularly the acquisition of US military equipment), with a little for civilian use. Apart from that amount, Israel also receives help in the form of special projects (Iron Dome, Arrow 1, Arrow 2, David's Sling). We are also helped by the fact that the grant is transferred in its entirety at the start of each year, rather than in installments.
Of course, we owe the Americans a thank you for the generous aid. But it's also clear that assistance creates dependence, just as it is clear that the moment it is conditional upon it being spent on American products, we are not free to buy the equipment optimal for our needs at better prices, thereby weakening Israeli industry.
American presidential candidates frequently refer to this assistance as something that should be reconsidered, and President Trump goes to the trouble of reminding us from time to time that we need to "pay" for American defense aid.
The money from the US does not account for more than one percent of Israel's GDP. At one time, it was critical, but now, it's a habit. At age 72, we can manage without our parents' help. The establishment of a national unity government might be an opportunity for Israel to make a bold decision about weaning ourselves off of it. A plan to gradually reduce it or even end it by 2028 would be a gesture to the Americans in a time of coronavirus, and a declaration of independence for us.
Subscribe to Israel Hayom's daily newsletter and never miss our top stories!
