Media Central

Fact Sheet

US-Israel Relations

"My view is that the United States’ special relationship with Israel obligates us to be helpful to them in the search for credible partners with whom they can make peace, while also supporting Israel in defending itself against enemies sworn to its destruction."    President Barack Obama, speech to AIPAC conference

 

Excerpt from President Bush’s letter of 14 April 2004:

The United States is strongly committed to Israel's security and well-being as a Jewish state.

As part of a final peace settlement, Israel must have secure and recognized borders, which should emerge from negotiations between the parties … it is unrealistic to expect that the outcome of final status negotiations will be a full and complete return to the armistice lines of 1949…It is realistic to expect that any final status agreement will only be achieved on the basis of mutually agreed changes that reflect these realities.


Trade and Investment:

 

The US and Israel have had a Free Trade Agreement since 1985.

The US is Israel’s main trading partner.  Israel ranking about 20th in the US’s trading partners.

  • Export partner:  US 38.4% of total export

  • Import partner:  US 12.4% of total import

 

US Companies invest directly in Israeli companies:
 

July 2005:  Intel invested $4.6 billion in its Israeli branch.  Israel promised up to $525 million to secure the deal.

May 2006: Warren Buffet bought 80% of Iscar for $4 billion.

July 2006:  Hewlett Packard acquired Mercury Interactive Corp for $4.5 billion.

 

Start Up Companies:

  • Israel has the largest number of startups in the world proportionate to its population, and is only second to the US in absolute numbers.

  • More than 120 Israeli companies trade on US exchanges and even more trade on global exchanges. Most of these companies are small and mid caps, while a few, like generic pharmaceutical giant, Teva Pharmaceutical (NASDAQ: TEVA) are large caps.

  • Israeli high-tech startups raised $1.62 billion in 2006, the highest amount in five years.

  • In the third quarter of 2007, 108 Israeli high-tech companies raised $414 million from venture investors – both local and foreign.


 

US Military and Civilian Aid to Israel:

Most recent developments:

After meeting Prime Minister Olmert at the White House on June 19, President Bush said that a new 10-year aid agreement would be signed to ensure that Israel retains a “qualitative military edge.” Israel has asked for military assistance to be increased $50 million a year; at the end of 10 years, Israel would receive $2.9 billion a year. The President also directed Secretary of Defense Robert Gates to expedite approval of IDF procurement requests in order to replenish arms and materiel used during the 2006 war against Hezbollah in Lebanon. (CRS Report for Congress, July 6, 2007)

 

History of US Aid to Israel:

  • The US provided Economic Grants until 1959 and until 1985 funds for economic purposes consisted of loans which Israel repaid.

  • From 1949-65, U.S. aid averaged $63 million per year. 95% was economic development assistance and food aid.  From 1966 through 1970, average annual aid per year increased to about $102 million. Military loans increased to 47% of the total.  From 1971 to the present, U.S. aid has averaged over $2 billion per year. 66% has been military assistance.

  •  Israel started to buy arms from the US in 1962, but military grants were not given until after the 1973 Yom Kippur War.

  •  Three special aid packages were given in 1979, 1985 and 1996.

  •  1979:  Israel received $3 billion ($2.2 of which was in loans)

  •  1985:  In response to a severe economic crisis, the US gave $1.5 billion in emergency aid in two installments (1985 and 1986)

  • 1996:  To fight terrorism, Israel received $100 million (split between 1996 and 1997)

 

 

US Aid to Israel in Numbers:

(Total includes Military, Economic, Food for Peace, Import-Export Bank Loan, Jewish Refugee Resettlement Grant, Housing Loan Guarantee, American Schools and Hospital Grant, Other Loan, Cooperative Development Grant, Other Grant.  Not included in this figure are Loan Guarantees and specially funded projects like the Arrow missile.)

 

  • Figure not available for 2007

  • 2006          US$2,630 million

  • 2005          US$2,630 million

  • 2000          US$4,129.1 million

  • 1990          US$3,434.9 million

  • 1980          US$2,146 million

  • 1974          US$2,646 million

  • 1970          US$93.6 million

 

 

US Aid in Context:

 

  • In the years 1999 to 2004, total aid provided by the US to Israel ($18.9 billion) was nearly matched by total US aid to Arab countries ($17.7 billion).

  • The plan for 2008 is to decrease military aid to those countries in the Middle East that are not involved on the war on terror.  But the US will increase military aid to Israel ($2.4 billion), Egypt ($1.3 billion) and Lebanon which are viewed as being important to the war on terror.

  •  The US is not the only financier in the Middle East.  The USSR financed the building of the Aswan Dam in Egypt starting in 1960.  1/3 of the $1 billion dollars was given as a

    gift.  Separately, the USSR gave $4 billion to Egypt between 1955-1973 and another $1 billion in civilian aid over the years 1955-1968 (not including the Aswan Dam project).   

     


                             


United Nations Voting Records:

 

Country

2006 Voting Coincidence

2005 Voting Coincidence

Israel

84.2%

90.5%

Egypt

7.4%

8.9%

Iran

7.5%

9.1%

Iraq

6.9%

9.7%

Jordan

5.3%

12.5%

Kuwait

8.8%

9.6%

Lebanon

8.8%

11.6%

Oman

7.6%

9.0%

Saudi Arabia

9.9%

12.8%

Turkey

35.4%

36%

UAE

7.7%

8.1%

Yemen

7.6%

11.4%

                             

*The Palestinian Authority is not a UN member and does not have voting privileges.

 

 

US Presidential Visits to Israel:

  • President Richard Nixon was the first US President to visit Israel.  His visit was on June 16-17, 1974.  He met with President Katzir and Prime Minister Rabin.

  • President Jimmy Carter visited Israel March 10-13, 1979.  It was a State visit and met with President Navon and Prime Minister Begin. He also addressed the Knesset.  (He also visited Israel in 1973, prior to becoming President and while he was Governor of Georgia.

  • President Bill Clinton visited Israel four times as President.  (He also visited with his wife Senator Hilary Clinton in the fall of 2005, and once prior to his becoming President.) October 27-28, 1994 Met with senior Israeli officials and addressed the Knesset.  November 5-6, 1995 Attended the funeral of Prime Minister Rabin. March 13-14, 1996 Discussed cooperation against terrorism with senior Israeli officials. December 12-15, 1998 Met with Prime Minister Netanyahu and senior Israeli officials.

  • President George W. Bush has visited Israel once before becoming President in 2001 and is scheduled to visit on January 9, 2008

 

 

US Secretaries of State Visits to Israel:

 

John F. Dulles                   Visits:  1                             1953
William P. Rogers             Visits:  1                             1971
Henry A. Kissinger           Visits:  15                           1973-1975

Cyrus Vance                      Visits:  8                             1977-1979

Alexander M. Haig, Jr.    Visits:  3                             1981-1982

George P. Shultz               Visits:  8                             1983-1988

James A. Baker, III          Visits:  10                           1991-1992

Warren M. Christopher   Visits:  21                           1993-1996

Madeleine K. Albright     Visits:  9                             1997-2000

Colin L. Powell                  Visits:  7                             2001-2004

Condoleezza Rice              Visits:  11                          2005-2007

 

 

 

 

Points of Friction between Israel and the US:

  • Israel’s technology sales to China in 1992, 1996 & 2004 – US feared an imbalance in the Asian military picture.
     

  • $10 billion dollars in loan guarantees in 1992 to ease the burden of the large Soviet immigration that was finally approved when Prime Minister Rabin promised to freeze settlement activity.
     

  • US sale of AWACS to Saudi Arabia
     

  • The 1952 Mutual Assistance Defense Agreement – limits the use of US military equipment for defense only.  According to the Arms Export Control Act, the US may stop aid to countries that use US military assistance for anything other than “legitimate self defense.”  Therefore, the US can, and has on four occasions, questioned Israel military actions using US military equipment

     

  • The US restricts transferring US arms to third countries without US approval – In one instance, the US prohibited the Israeli sale of Kfirs and Mysteres with GE J-79 jet engines to Latin American countries to avoid an arms race.
     

  • Israel protests US arms transfers to Arab countries, especially those to those countries that threaten her security – Specific cases include Stinger missiles to Jordan in 1984 (sale not approved); 40 aircraft Hawk missiles, Stinger missiles and Bradley fighting vehicles to Jordan in 1985 (sale was postponed); and missiles to Saudi Arabia in 1986 (sale completed).  In 1990, the US was considering additional arms transfers to Saudi Arabia.  Israel requests additional military assistance and got $700 million appropriated by Congress from stocks in Europe.

 

 

Fast Facts:

  • As of 2006, 121,595 North American immigrants had come to live in Israel since 1948.
     

  • An additional 2,000 new immigrants (+ 700 returning Israelis) came from the US and Canada as of November 2007. 
     

  • There are approximately 400,000 Israelis living in the US.