The United States and Israel maintain a unique alliance founded on their commitment to democracy, the rule of law, human rights and a shared strategic vision. The Administration and the Congress have demonstrated tangibly their appreciation of the important role Israel continues to play in advancing United States national interests in the Middle East and around the world. The Congress approved an appropriation to Israel for fiscal year 2000 in the amount of $2.88 billion, which reflects the agreement with Israel’s previous government to phase out economic aid over a ten-year period coupled with incremental increases in security assistance. This annual package is separate from the special Wye River package described above.

Unfortunately, the overall foreign aid program approved by Congress for this year fell significantly below the amount requested by the President. The JCPA believes that the United States, in order to meet its global responsibilities, must increase its annual commitment to foreign aid, an amount that represents less than 1% of the federal budget.

The United States and Israel continue to cooperate in trying to find effective responses to the challenges of international terrorism and the acquisition of weapons of mass destruction by Iran, Iraq and other irresponsible regimes. Israel is placing in operation its Arrow 2 antiballistic missile system, culminating a 14-year development program funded jointly by Israel and the United States. Other systems, capable of destroying ballistic missiles shortly after liftoff (in the boost phase), are being developed as well. Both countries are working to find effective ways of preventing the transfer of missile and non-conventional weapons technologies from the former Soviet Union to Iran.

With the negotiations between Israel and the Palestinians reaching a crucial phase, the potential exists for differences to emerge between Israel’s policies and the views of the United States government. However, Prime Minister Barak can be expected to work closely with the President, Secretary of State Albright and other senior American representatives to make sure that Israel’s positions and requirements in the peace process are well understood and appreciated.