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The following article is extracted from the July-August 1997 issue of THE OTHER ISRAEL

Diplomatic duels - Facts on the ground - Pulling the purse strings
Alliance and counter-alliance - Scandals and crises - A fractured society - Deadly deadlock

Pulling the purse strings

The coincidence of the three issues enabled Netanyahu to start a propaganda campaign in the Western media, in an effort to regain some of the ground lost to the Palestinians since CNN broadcast live the entry of the bulldozers to Har Homa. This was aimed especially at one of the few forums congenial to Netanyahu -- the United States Congress, mirror image of the UN General Assembly as far as Middle East issues are concerned. While the Clinton Administration's support of Netanyahu had been reluctant and full of reservations, many of the leading figures on Capitol Hill seemed to fully share Netanyahu's own attitudes.

The House passed by an overwhelming majority a resolution supporting Israeli rule over "United Jerusalem", in a session replete with anti-Palestinian speeches -- a nice propaganda victory which Netanyahu needed very much, and more than that. For unlike the U.N. Assembly General with its non-binding resolutions, the U.S. Congress possesses a quite binding control over the purse strings of foreign aid.

This power Netanyahu proceeded to use, with his friends in Congress threatening to cut off aid to both Egypt and the Palestinian Authority, unless the two showed themselves more "accommodating." Under the shadow of that threat, Netanyahu agreed to accept the mediation of Egypt -- whose traditional support of the Palestinian cause was expected to be offset by the apprehension of losing the annual two billion Dollars which had been the mainstay of the Egyptian economy in the past two decades.

But Netanyahu's blackmail tactics so far gained him only meager results. Under the pressure of Congress -- applied both directly and via Egypt -- the Palestinians once again consented to hold meetings between their Heads of Security and the Israeli counterparts. But when Netanyahu aides announced triumphantly that "the Palestinians had resumed security cooperation, in spite of Har Homa" they were soon confronted with new outbreaks of violence at Hebron, highly visible on the Israeli and international TV screens.

In any case, the ability of Congress to maintain its pressure is limited by the consideration that, should either Mubarak or Arafat fall, they are likely to be replaced by their respective Muslim oppositions -- an outcome far from serving U.S. interests.

Meanwhile, Netanyahu himself did not emerge unscathed from his tampering with the U.S. foreign aid. When the idea came up in the State Department to grant U.S. economic aid to Jordan, a country which so far derived little economic benefit from its peace treaty with Israel, Netanyahu was reminded of the rash pledge he had made in 1996 to "gradually phase out American aid to Israel" and asked to "donate" to Jordan fifty million Dollars out of Israel's share of the foreign aid budget.

In itself, fifty million Dollars is a minute sum out of three billion -- and giving them to Jordan at this particular juncture seemed a good way of dissuading Amman from being too outspoken in support of the Palestinians* -- but the precedent of a cut in U.S. aid to Israel, for the first time in decades, might haunt Netanyahu and his successors in years to come.

* For the same reason, Netanyahu consented to give Jordan considerable quantities of water from the Israeli Sea of Galilee, under a clause in the Israeli-Jordanian Peace treaty which was hitherto not fulfilled -- thus nipping in the bud a crisis in Israeli-Jordanian relations which might have ranged Jordan solidly on the side of the Palestinians.

The Editors

THE OTHER ISRAEL is the newsletter of the Israeli Council for Israeli-Palestinian Peace

P.O.Box 2542
58125 Holon
Israel.

Phone/Fax: (03) 5565804

Editor: Adam Keller
Coeditor: Beate Zilversmidt

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