Four senior US senators, John McCain, Joe Lieberman, John Barrasso and John Thune held a press conference Sunday afternoon in Jerusalem in which issues pertaining to the future of US-Israeli relations were addressed.
In response to George Mitchell's comment regarding the option of witholding loan guarantees if Israel persists in rejecting US and EU requests for freezing new construction in disputed areas.Jerusalem Post
Lieberman said unequivocally that any attempt to cancel financial guarantees to Israel will "not pass Congress."
McCain also weighed in on the issue, stating that any talk of withholding guarantees from Israel in order to pressure it is not helpful, and "I don't agree with it."
The defense minister expressed his happiness in meeting "old friends of Israel" who proved their support in hard times.
Barak said he was certain the senators will remain steadfast friends of Israel in any future situation.
What are these loan guarantees?
In 2002, Israel requested new loan guarantees from the United States to help it cope with the devastating economic crisis caused by the Palestinian uprising and unrelenting terror attacks against its citizens, as well as to prepare for the anticpated defense and economic costs associated with the U.S. war with Iraq. In 2003, Congress approved $9 billion in loan guarantees over three years. As with the earlier guarantees, Israel was required to use the funds within the pre-1967 borders and the amount of the guarantees could be reduced by an amount equal to Israel's expenditures on settlements in the territories. The loan period was initially extended one year, but Israel used only half the guarantees, so a request was made and approved by the United States to extend the period until 2011.
Jewish Virtual Library
Actually, under the law, the governemnt is required to reduce the amount of guarantees to offest Israeli spending in the Occupied Territories. The president can restore the offsets if it is determined to be in the US National Security Interests. WHich every president has done since Clinton.
Israel's finance minister stated that the Loan Guarantees don't matter
Israeli finance chief raps Mitchell on loan guarantees
January 10, 2010
JERUSALEM (JTA) -- Israel doesn't need United States loan guarantees, Israel's finance minister said.
Yuval Steinitz made the comment Sunday, according to Israeli media, in response to what Israel regards as a threat made by the U.S. special envoy to the Middle East, George Mitchell.
JTA
So what the heck is going on? Why are three republican Senators and Joe Lieberman so eager to shove a stick in George Mitchell's eye? Do they intend to force a Foreign Policy confrontation on the Peace Process?