Cash-strapped U.S. Government hands out $30 billion to Israel's military

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Israel Voices Satisfaction Over U.S. Aid Increase - New York Times

JERUSALEM (Reuters) - Prime Minister Ehud Olmert voiced satisfaction on Sunday over Washington's intention to offset a package of arms sales to Saudi Arabia and other Gulf states with increased military aid for Israel.
He said he and U.S. President George W. Bush, in talks at the White House last month, agreed Israel would receive $30 billion in U.S. military aid over the next decade, averaging $3 billion a year.
"This is an increase of 25 percent for the military aid to Israel from the United States. I think this is a significant and important improvement of the defense aid to Israel," Olmert told reporters.
He spoke a day after a senior U.S. defense official said Washington was working on a military assistance deal for Israel expected to top $30 billion over the next 10 years.
The aid boost has been widely seen as a U.S. bid to help allay Israeli concerns over a package of arms sales, that could be worth some $20 billion over the next decade, which Washington is preparing for Saudi Arabia and other Gulf states.
"We understand the United States' need to assist the moderate Arab states, which are standing in one front with the United States and us in the struggle against Iran," Olmert said, referring to Tehran's nuclear program.
A U.S. defense official said on Saturday the Bush administration hoped to present the regional package to the U.S. Congress for approval later in the year.
 
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