U.S. CUTS AID TO ISRAEL

ALTHOUGH THE U.S. HAS FOUND THE FUNDS TO PROP UP THE PALESTINIAN AUTHORITY AND PROVIDE AID TO VARIOUS ISLAMIC DICTATORSHIPS THROUGHOUT THE MIDDLE EAST, IT DOESN'T HAVE ENOUGH FOR ISRAEL (THE ONE DEMOCRACY AND UNEQUIVOCAL U.S. ALLY IN THE REGION).

Overstretched US cuts aid to Israel (Telegraph UK)
America has been forced to withhold funding from its key ally in the Middle East amid the strain of paying for its expensive military campaign in Iraq.

Washington had promised Israel a substantial increase in its financial support to bolster it against Iran. But US officials decided to amend their pledge because of escalating costs, including the need to spend $750 million (£375 million) to fly thousands of armoured troop carriers to Iraq to protect troops against Iranian-made roadside bombs. ...

The diversion of funds has caused a budget shortfall in Israel that forced Ehud Olmert, the prime minister, to convene an emergency cabinet meeting yesterday. Officials discussed ways of dealing with the £250 million deficit in next year's budget, which Israeli commentators said would result in austerity measures. More worryingly for Israel, there are fears the shortfall will have a significant impact on the ability of the country to defend itself as military training and procurement are cut back.

The tension over the delayed American money has tarnished relations between the two countries, which were boosted only last week when Israel confirmed it would enjoy a surge in American defence aid of 25 per cent over the next 10 years.