U.S./ISRAEL SIGN NEW DEFENSE AGREEMENT

Israel, Washington Sign New Defense Agreement - Barak Ravid
Israel and the U.S. on Thursday signed a Memorandum of Understanding on a new American defense package for Israel. The U.S. will transfer $30 billion to Israel over 10 years, compared with $24 billion over the past decade. Israel is slated to receive the first payment in October 2008, amounting to $2.55 billion. That sum will grow each year by $150 million until it reaches $3.1 billion in 2011. In addition, the agreement permits Israel to convert into shekels 26.3 percent of the aid money, thereby enabling it to procure defense equipment from Israeli companies. The rest of the aid must be used to purchase equipment from American military industries. (Ha'aretz)

U.S.: No Strings Attached to New Defense Package for Israel - Barak Ravid
The new $30 billion American defense package for Israel is not conditioned on diplomatic progress or concessions to the Palestinians, U.S. Undersecretary of State Nicholas Burns said Thursday as representatives from both countries signed the memorandum of understanding in Jerusalem. Burns said the aid to Israel was meant to counter "an axis of cooperation between Iran, Syria, Hizbullah, Islamic Jihad and Hamas that is responsible for the violence in the region." "A strong and secure Israel is an American interest," he said. "There is no question that...the Middle East is a more dangerous region now even than it was 10 or 20 years ago and that Israel is facing a growing threat." (Ha'aretz)

See also U.S. to Try to Maintain Israel's Military Edge - Herb Keinon
Israeli and American officials are now discussing what military equipment Israel can buy and Saudi Arabia can't, in order for Israel to retain its qualitative military edge. Burns said maintaining Israel's qualitative edge was a "major consideration." (Jerusalem Post)

See also America's 10-Year Military Aid Package - Herb Keinon
If Washington viewed Israel as a liability following last year's war against Hizbullah in Lebanon, it would not be investing $30 billion in its military over the next decade. Ron Dermer, Israel's economic attache to Washington, said, "The most important part of the agreement is the message it sends to Israel's enemies that America remains fully committed to Israel's security." (Jerusalem Post)