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![handle is hein.gao/gaobaaxus0001 and id is 1 raw text is:
DOCtUINT RESUME
068518 - (B23474171
U.S. Economic Assistance for Israel. ID-78-31; B-12502q. August
18, 1978. 13 pp. + 7 appendices (13 Fr.).
Report to the Congress; by Elmer B. Ftaats, Comptroller General.
Issue Area: International Economic and Military Programs (600);
International Economic and military Programs: Impact of 0.S.
Security Supporting Assistance Abrcad (611);International
Economic and Rilitary Programs: U.S. Development Assistance
Overseas (603).
Contact: International v.
Budget Function: Interna-,onal Affairs: Foreign Econcmic and
Financial Assistance (151).
Organization Concerned: Agency for International Development;
Department of State.
Congressional Relevancin: House Committee on International
Relations; Senate Committee on foreign Relations; Ccngress.
Authority: International Security Assitance kct of 1977 (P.L.
95-92; 91 Stat. 614) , Cargo Preference Act of 1954 (1.L.
83-664). Foreign Assistance Act of 1961. Foreign Assistance
and Related Appropriation Act of 1S76. Foreign Assistance
Appropriations Act of [of] 1972. H.R. 12222 (95th Cong.). S.
3075 (95th Cong.).
U.S. support for Israel's political and economic
stability has been expressed through a variety of economic and
military aid programs. The Security Supporting Assistance
Program, involving a Comaodit! Inmort Program (CIE) and cash
grants, is the primary economic aid program fo r Israel. This aid
is usually justified for political rather than solely economic
reasons. Under the CIP, te United States reimburses Israel for
commercial and government purchases Arom U.S. suppliers,
excluding purchases for military use or for sale in cccuFied
territories. This has eased Israel's balance-of-payments
deficits. The cash grant is calied untied aid because the
funds do not have to be spent on purchases in the United States.
Funds are to be spend on nonmilitary commodities in nonoccupied
areas. Findings/Conclusions: The CIE carried £258 million in
undisbursed funds iutc 1978 because reimbursements have noy kept
pace vith increasep in annual funding levels. I key CIE question
is whether it is essential for aid levels to be linked tc
specific U.S. purchases or whether it is acceptable to establish
that Israel make certain general levels of U.S. noamilitary
imports. Present procedural reguirements have teen kurdensome to
both the Agency for International Development (AID) and to
Israel. Alternatives to present methods were ccnsaidered in
response to GAO suagesticns. The State Department and Alt felt
that program objectives could best b served by replacing the
CIP with a cash transfer program. Altbough the impact of this
proposal cannot yet be fully evaluated, GAO believed that it
would alleviate the problem of documenting specific U.S. exports](ViewImageLocal?handle=hein.gao/gaobaaxus0001&div=1&collection=&method=preview&ext=.png&size=3)