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USA to boost Israel with $38-bn defence package

Jacob Nagel, Israel’s acting national security adviser, arrived in Washington Tuesday to sign on behalf of his country. Netanyahu’s office confirmed in a brief statement that a deal had been reached, but offered no additional comment.

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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.

Israel is already the biggest single recipient of USA military aid from the State Department’s foreign military financing budget, and also receives some direct support from Pentagon funds for specific projects. The United States and Israel have also been at odds over the Palestinians.

The $38-bilion aid will allow Israel, America’s main ally in the Middle East, to upgrade its defences with new fleet of fighter aircraft, a more agile ground force and a stronger missile shield, senior USA officials said.

Following the signing of the new Memorandum of Understanding for U.S. security assistance to Israel on Wednesday, several American Jewish groups and community leaders applauded the agreement, valid until 2028.

In his statement, Netanyahu acknowledged the recent diplomatic disputes between Jerusalem and Washington, but said they “had no effect whatsoever on the great friendship between Israel and the U.S.”. Netanyahu had sought a deal totaling $45 billion over ten years.

Last year, NSA surveillance appeared to show Mr Netanyahu attempting to lobby potentially sympathetic senators and congressmen to block the ratification of the deal which saw Iran agreeing to suspend its nuclear enrichment programme in exchange for the lifting of some economic sanctions.

No other country that receives US military aid is permitted to use the funds to purchase from non-U.S. firms.

Talks over the deal – which will come into effect in 2019 – had previously faltered over these issues, as well as disagreements about the size of the aid package. Both Republican Donald Trump and Democrat Hillary Clinton have pledged to protect Israel’s security if elected.

– Elimination of a longstanding provision that has allowed Israel to use a portion of the US aid to buy military fuel. Under the previous arrangement, Congress approved funds for Israel’s “Iron Dome” missile defense system separately and on an annual basis.

Israel is America’s strongest ally and a stalwart of democracy in a very troubled region.

“With these funds, Israel will be able to modernise and better equip its armed forces”, said a statement from the group. “They do not impact the great friendship between Israel and the USA, friendship that is evidenced in this agreement that will greatly help in forging Israel’s power in the coming decade”. “The Palestinians have demanded that construction stop before restarting peace talks, and the US considers the settlements illegitimate”.

This expansion of settlements isn’t Netanyahu’s only affront to US diplomatic efforts.

He said it was “outrageous” that Palestinians wanted their future state to include “no Jews” and rejected the notion that the settlements were an obstacle to peace.

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The Prime Minister acknowledged in his statement that while Israel and the United States have had disagreements, they will not affect the two countries’ friendship.

US approves record $38bn Israel military aid deal