Reagan Wants $1.8 Billion in Military Aid for Israel

President Reagan assured Israeli Defense Minister Yitzhak Rabin today that he will request about $1.8 billion in military aid for Israel for next year but took no action on economic assistance.

Still, Rabin said he was “optimistic about what will be done” to help Israel combat inflation that has exceeded 400% and limited its capacity to pursue a peaceful settlement with the Arabs.

“Israel and the United States are interested in finding ways to bring about the advancement of the peace process and its expansion,” Rabin said. “But . . . first we have to strengthen Israel’s economy. With a weak Israel, very few Arab countries will negotiate seriously peace.”

At the White House meeting, Rabin outlined steps taken by Israel to reform its economy. These include a reduction of $1.2 billion in subsidies for basic commodities and $1.1 billion in government operations.

To his “great sorrow,” Rabin said, the reductions include the defense budget. “Israel is going to take security risks and real ones,” he said.

Israel had requested an $800-million emergency economic appropriation from the United States as well as $1.9 billion in economic assistance for 1986.

“I understand there is a positive attitude on the part of the President” regarding the economic assistance, Rabin said. But, he added, “I do not believe there is a decision at the present.”

Apparently the Israeli request, like most other budget items, is caught up in the Administration’s own cost-cutting efforts.

Rabin said U.S. aid “will be not exactly what we wanted, but around $1.8 billion.” The figure represents a compromise between the $1.4 billion Israel is receiving this year and the $2.2 billion it sought for 1986.

Rabin said most of it would be spent in the United States on new weapons.