(AP-Washington Post) Karoun Demirjian - The diplomatic crisis between the U.S. and Israel has sent a tremor through their alliance, but one key part of the bond seems virtually untouchable: the roughly $3 billion a year in U.S. military aid. The overwhelming part of the money cycles back into the American economy. Israel's aid is earmarked entirely for military spending, and at least three-quarters of the aid must be spent with U.S. companies. This means that the "close, unshakable bond," as Secretary of State Hillary Clinton described it, is also a mutually beneficial one: Israel gets the latest American military technology, and American weapons makers - Lockheed Martin, Raytheon, Boeing and others - get a steady stream of income. The package represents about 20% of the country's annual defense budget. Israel spends the bulk of its aid on warplanes such as F-15s and F-16s, jet fuel, high-end munitions and missile defense systems - weaponry the Israeli military would find difficult to replace or do without.
2010-03-22 10:06:49Full ArticleBACK Visit the Daily Alert Archive