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New $38B Israeli aid deal signed

WASHINGTON, D.C.: The United States on Tuesday (Wednesday in Manila) announced it had reached a record $38-billion 10-year military aid deal with Israel, despite increased disagreement over the Middle East peace process.

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The agreement, which equates to $3.8 billion a year, is the largest bilateral military aid package ever and includes $5 billion for missile defense, additional F-35 joint strike fighters and increased mobility for its ground forces.

Almost 10 months of drawn-out aid negotiations underscored continuing friction between President Barack Obama and Netanyahu over last year’s US -led nuclear deal with Israel’s arch-foe Iran, an accord the Israeli leader opposed.

The aid totals $3.8 billion a year — up from $3.1 billion the US gave Israel annually under the current 10-year deal that expires in 2018.

The deal also phases out the 26 percent of annual aid Israel was allowed to spend on its own defense contractors – now it has to buy from US manufacturers. The agreement also includes $5 billion in joint missile defense spending which will significantly advance Israel’s defensive capabilities as well as technology that benefits USA defense. The agreement states the military aid for Israel which comprises a commitment to give $38 bn over 10 years.

The financial pledge reaffirms American support of Israel despite some recent public spats between the allies over various issues, like last year’s landmark nuclear agreement with Iran – which drew staunch opposition from Israeli PM Benjamin Netanyahu.

It remains to be seen how much support there is in Congress for this new bill, despite Graham’s confidence, and numerous usual lobbyists for such aid may fear that its passing so soon after the Obama deal would hurt Israel’s credibility, after promising not to lobby for such funds.

The 3.8 billion dollars-per-year deal is up from 3.1 billion dollars the United States gave Israel annually under the current 10-year deal, which expires in 2018.

Obama’s national security adviser Mr Susan Rice witnessed the deal and called it a sign of Washington’s “Unshakable Commitment” to the security of Jewish state. Previous U.S. aid was critical in supporting the development of Israel’s state-of-the-art Iron Dome anti-missile system.

“I would like to thank President Obama and his administration for this historic deal”. The agreement, to be signed today, follows 10 months of talks.

-Elimination of a longstanding provision that has allowed Israel to use about 13 percent of the USA aid to buy military fuel. Instead, the money must be spent on equipment manufactured by the US defence industry.

Israel considers a nuclear-armed Iran to be an existential threat and Mr Netanyahu was furious at Mr Obama’s assertion that the deal made Israel safer by curtailing Iran’s nuclear programme and ambitions.

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“These are disputes you have between family”, Netanyahu said. “We are proud that no other administration has done so much to enhance Israel’s security”.

U.S. President Barack Obama shakes hands with Israel's Prime Minister Benjamin Netanyahu during their press conference in Jerusalem