The US has agreed to supply Israel with military aid for the next 10 years in a record $38bn (£28.bn) deal – the largest in US history.
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Displaying an unprecedented commitment to the Jewish state, the United States has signed the biggest-ever aid deal in its history worth Dollars 38 billion (Rs 2.53 lakh crore) with Israel under which it will buy advanced planes and weaponry and boost the missile defense shield of Jerusalem.
The $38-billion deal come into effect after the current $30 billion MoU signed in 2007 expires in 2018 and will cover USA fiscal years 2019 to 2028.
The agreement signed today by USA states that Israel will be liable to spend the funds on Israeli Military products and eventually all of the money will be spent on American military industries.
In previous deals, Israel has also been able to spend up to 13% of USA aid on military fuel, a practice that will end with this new agreement.
For years, the US’ funding for Israeli missile defence has been subject to the uncertainty of the annual appropriations process.
Under the agreement, Israel can not seek extra money from Congress beyond what is guaranteed annually.
Washington has warned that Prime Minister Benjamin Netanyahu’s policies – along with Palestinian violence – are putting at risk hopes of an eventual peace deal. The funds will be used to strenghten Israel’s air defense systems, to upgrade most of its figher aircraft and to improve the mobility of its ground forces.
The new agreement will also include a decade’s worth of funding for Israeli missile defense and a pledge from Israel that it will not lobby Congress for extra money for the program.
The agreement, signed on Wednesday at the state department in Washington, will go into effect upon the expiration of the current package in 2018.
After sealing the deal, the outgoing American president, who has had his differences with Israeli Prime Minister Benjamin Netanyahu in the past over Iran nuclear deal, stressed on the importance of finding a peaceful solution to the problem the state is embroiled in with Palestine.
The pact will elevate U.S. aid to Israel from $3.1bn a year now to $3.8bn, officials say, but the Israelis had to make concessions to secure the money.
Israeli officials have said predictability about USA. aid is crucial to help its military to plan for the future. President Obama was unwilling to budge on the issue and as a result, Netanyahu fears for the economic well-being of Israeli defense firms that rely heavily on revenue from the American largesse.
Obama and Netanyahu will both be in NY next week for the opening of the UN General Assembly, and officials have not ruled out the possibility of a meeting on the sidelines.
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“America’s commitment to Israel’s security must always remain rock-solid and unwavering”, Clinton said in a statement.
