From: <pnmideast@igc.apc.org>
Subject: Action Alert: Last Chance to Stop Loan Guarantees
Followup-To: alt.activism.d
Originator: rich@pencil.cs.missouri.edu
Organization: ?
Date: Wed, 26 Aug 1992 19:02:55 GMT

/* Written 11:31 pm  Aug 25, 1992 by awair in cdp:mideast.action */
/* ---------- "Action Alert: Last Chance to Stop L" ---------- */
From: Arab World and Islamic Resources <awair>
Subject: Action Alert: Last Chance to Stop Loan Guarantees


THE MIDDLE EAST JUSTICE NETWORK
P.O. BOX 558
CAMBRIDGE, MA  02238
tel. (617)666-8061 fax.(617)776-8926

ACTION ALERT #37
August 13, 1992

LAST CHANCE TO STOP LOAN GUARANTEES!
Loans will fund settlements and threaten peace process

The loan guarantee debate has once again moved to center stage
with President Bush's announcement on August 11th that he and
Israeli Prime Minister Rabin had agreed on the "basic principles"
on which the US would extend Israel $10 billion in loan guarantees
over a five year period.
THE MERITS OF AMERICAN LOAN GUARANTEES MUST BE
EVALUATED UNDER TWO CRITERIA: WHAT ARE THE COSTS TO
AMERICANS AND HOW WILL THEY AFFECT PALESTINIANS
AND PROSPECTS FOR REGIONAL PEACE?

SETTLEMENT FREEZE?

Rabin has promised a freeze on <some> settlements and moderation
towards Palestinians - on August 9th his government stated it
would seek to amend a 1986 law forbidding contact between anyone
from Israel and the territories and the PLO.   But Rabin has NOT
pledged an all-out settlement freeze.  Of the 6500 housing units
temporarily suspended, 5700 exist only as plans.  The remainder
are in preliminary stages.  According to the Israeli housing
ministry, 9600 units will continue being built, and settlements
will not be restricted around East Jerusalem and the so-called
"confrontation lines" in the Golan and Jordan Valley.

In an April 1992 interview with the Israeli newspaper DAVAR, Rabin
said:  "The existing settlements cannot be dismantled.  At this
stage autonomy must be rooted in facts on the ground.  Our
position against political settlement has nothing to do with
autonomy.  We will preserve all the settlements, political as well
as non-political, because they are a reality."  Cabinet ministers
have also claimed settlements would be expanded to "meet the
natural growth in the area" (JERUSALEM POST INTERNATIONAL, July
25).  By agreeing to loan guarantees, the President has undermined
full linkage of aid to settlements.  The amount Israel spends on
settlements in the occupied territories may be deducted from the
loan guarantees, excluding the first year, when Israel apparently
will receive the entire $2 billion (NEW YORK TIMES, August 13).
However, deductions will not apply to "security" settlements,
still undefined.

PRIVATE, NOT GOVERNMENT FUNDS MAY PAY FOR NEW
SETTLEMENTS

Moreover Israel wants to absorb hundreds of thousands more Jewish
immigrants from the former Soviet Union.  To do so, building must
continue.  Many of the units that will be built are included in
the "7 Stars" settlement program (see BREAKING THE SIEGE no. 21)
located on both sides of the "green line" or "confrontation zone".
Rabin calls these "security settlements" and  calls for their
continued expansion.

Building has traditionally acted as a jump start to the largely
state-owned Israeli economy.  Given Israel's poor investment
rating, its government has promised American officials that it
would sell government industry to private entrepreneurs, thereby
decreasing its risk of default on the loans.  Despite Israel's
August 6th suspension for "up to two weeks" of the process of
allocating state land for privately financed construction in
Jewish settlements, continued construction of housing by private
firms may well be carried out while the government maintains that
it is not fostering settlement activity.

THE LOAN GUARANTEES: MORE SPECIAL PRIVILEGES

Congressional supporters of loan guarantees have argued that
Israel is a low-risk recipient, "having never defaulted on a
loan."  But besides being America's highest foreign aid recipient,
Israel's annual aid package is exempt from many of the rules
governing other countries' foreign aid which masks Israel's
inability to repay loans.

According to the Congressional Research Service $21 billion in
American government "loans" to Israel have been waived since 1974.
The Cranston Amendment (1984) authorizes the United States to
appropriate to Israel annually at least as much as Israel owes its
American beneficiary (including principal and interest), thereby
cancelling Israeli "debt."

The one-time $400 million loan guarantee issued to Israel in May,
1990, far exceeded the normal ceiling of $25 million available to
other countries.  The total US loan guarantees for housing in
developing countries worldwide given through US AID amounted to
only $480 million in 1991.  Furthermore the usual provision which
mandates that foreign loan guarantees be provided for housing
exclusively for poor people was waived.  Like the $10 billion
package, the former loan program guaranteed only Jewish housing.

WHAT DO AMERICANS GET COMPARED TO ISRAEL?

Soviet Jewish emigration to Israel has drastically declined since
Israel first requested $10 billion to absorb newcomers.   Many
Members of Congress seem to think the needs of the new immigrants
have a greater claim to US bounty than the hundreds of thousands
of Palestinians displaced from the Gulf, and than the Somalis and
millions of other people worldwide who have been forced to flee
their homes and face starvation.  And as Americans face harder
times, should they be made to pay hundreds of millions of dollars
which must be set aside for Israel's loan guarantees while some
loan guarantee programs at home pale in comparison to the Israeli
request?

Compare the following 1991 US loan guarantee programs with the
promise of $10 billion to Israel:

Community Development      $109 million
Native Americans     $49 million
Rural Development    100 million
Low Rent Public Housing     0.00
Economic Development        0.00


ACTION IS CRUCIAL!

It appears that Congress will consider the loan guarantees when it
resumes its sessions after Labor Day.  Before then your elected
officials, challengers in the forthcoming elections and local
communities need to learn that loan guarantees to Israel are NOT
in the best interest of the US or the Middle East peace
negotiations.  The  following sample letter can be adapted to send
to your local and regional newspapers.

Honorable (Your Senator) United States Senate Washington, DC
20510

or

The Honorable (Your Representative) U.S. House of Representatives
Washington, DC  20515

Dear Senator/Representative ____________

I am writing to urge you to oppose giving  $10 billion in loan
guarantees to Israel at this time.

Issuing the loan guarantees will have an adverse impact on the
Middle East peace process.  Prime Minister Rabin has pledged to
continue settlement construction, particularly in East Jerusalem
and along the "confrontation lines" and apparently intends to go
ahead with the "7 Stars" settlement plan which will obliterate the
pre-1967 armistice line ("green line").   Now that Israel has
confiscated  70% of the West Bank and  50% of the Gaza Strip,
Palestinians can not be expected to receive Israel with sincerity
in any negotiations if settlements continue.

Like many Americans, I am also deeply concerned about the American
economy.  Not only will loan guarantees require that our
government set aside considerable funds in case Israel defaults,
but they will reduce the ability of American cities and rural
communities to secure such badly needed investment guarantees.

Last year the United States gave Israel nearly $5 billion dollars
while our economy deteriorated.  We should not be liable for
Israel's economy, particularly if Israel were to default on
repaying new loans.  Israel's "zero default" record is a myth--the
Cranston Amendment is simply a bailout.

We have already this year pledged more than $3 billion in foreign
aid to Israel.  Any move to increase this amount should be
contingent on demonstrated proof that Israel has stopped ALL
settlement expansion and pledged to end its 25-year occupation of
Palestinian territories.

Sincerely,

BIAS IN MEDIA: PROTEST OF CBS ENCOURAGED

CBS newscaster, Dan Rather, Henry Kissinger and CBS consultant
Fouad Ajami hosted a June 3rd fundraising banquet for the
Jerusalem Foundation, an organization headed by Jerusalem mayor
Teddy Kollek which raises money for Jewish immigrant absorption.
A tape of the evening's proceedings was transcribed by Fairness
and Accuracy in Reporting (FAIR).

Neither Rather nor Ajami objected to Kissinger's statement that
"you can't really believe anything an Arab says."  Rather began
the event by reading one of his "favorite" poems, "Jerusalem of
Gold", that heralds the "renewal" of Jerusalem when it came under
Jewish control in 1967.  Rather then commented that "many of us
celebrate 25 years" of Jerusalem's "reunification."  Ajami later
suggested that Palestinians were fortunate to have Israelis as
their occupier rather than someone else who 'might not have
influenced them towards a liberal outlook.'

FAIR and the American-Arab Anti-Discrimination Committee (ADC)
have been conducting daily protests of CBS and have initiated a
letter writing campaign which questions the objectivity of its
news.  The protests condemn the broadcasting company and point out
that such remarks, had they been made in reference to any other
ethnic group or nationality, would have prompted a pubic apology
by CBS.

Letters may be addressed to:  Eric Ober, President, CBS News, 524
West 57th Street, New York, NY 10019.  ADC can be contacted at
4201 Connecticut Ave., N.W., Washington, DC 20008.  Their
telephone number is (202) 244-2990.

--------------------------------------------------------------------------
The Middle East Justice Network was formed by Americans drawn
together by a common concern about our government's role in
supporting the Israeli occupation of the West Bank and Gaza.  We
advocate a US policy based on United Nations Resolutions 181, 242
and 338, and the principle of territory for peace, aiming at the
creation of a Palestinian state alongside Israel with
international security guarantees for both states.  Our bimonthly
newsletter, BREAKING THE SIEGE, is intended to break through the
siege mentality which has long prevented the Israeli- Palestinian
conflict from being fairly discussed and understood.  To subscribe
to BREAKING THE SIEGE and Action Alerts (one year, first class
mail) send a donation of US$15.00(introductory offer),
$20.00(renewal), $50.00, $100.00... to:  Middle East Justice
Network P.O. Box 558 Cambridge, MA  02238

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