Loan Guarantees


Resolution

Adopted by the CCAR

Loan

Guarantees

Adpoted by the 103rd Annual

Convention of

the Central Conference of American Rabbis

San Antonio, Texas, April, 1992

The

unprecedented numbers of olim

in these last months have cast an economic burden on Israel

which cannot be funded

in

traditional ways. Israel has asked the United States Government to

guarantee loans

that Israel must

take to provide funds for housing, jobs and other elements of the

economic expansion now needed. In

previous resolutions, the Central Conference of American

Rabbis has called upon the United States

government “to authorize loan guarantees

as needed by Israel to mobilize foreign capital to finance

housing and the creation

of jobs

for immigrants from the U.S.S.R. and Ethiopia” (1991 Resolution on

Strengthening

Israel’s Economy).

Mindful of our domestic recession, we have pointed out that Israel

is requesting “guarantees for

loans, not loans; that Israel has never defaulted on

a loan; and that these loan guarantees will make a

critical difference in strengthening

America’s solid democratic ally in the Middle East”

(ibid).        

The Central Conference of American Rabbis

deplores the United States Administration’s

insistence on making the offer of loan guarantees

contingent on a freeze on construction

in the territories. While the Conference has itself cautioned

the present Government of Israel about the advisability of its

settlements policy, we strongly deplore

the United States’ insistence on this linkage. The Conference

also vigorously protests

the

administration’s lobbying other governments to dissuade them from

offering loan

guarantees to Israel.

Such conditioning not only compromises the neutrality of the

United States as convener of the

peace conference, undercutting the principle of

direct face-to-face talks between Israelis and

Arabs; it also prepares the ground

for further demands by the United States government for”good

behavior” on Israel’s part as the

condition for other forms of United States aid in the future.

The CCAR calls upon

the United

States government, which supported the appeal of Soviet Jews to “let

my

people go,” and President Bush,

who as Vice-President, played a key role in the success

of the 1984 aliya

of Ethiopian Jews, to unlink the loan

guarantees from the uncertainties of the peace

process and the volatility of Middle East politics,

thus enabling Israel to get on

with

the logical next steps of rescue-resettlement in the homeland. While

persuasive

economic and security-

based arguments can also be marshaled to buttress the case for

loan guarantees, the Conference

asserts that the case for approval on humanitarian

grounds is sufficiently compelling on its own. At

the same time, and with the same

humanitarian motive, we call upon Prime Minister Shamir to

divert the funds presently used

for

housing in the territories to the provision of shelter and employment

for the

hundreds of thousands of

Ethiopian and Russian olim.