U.S. finalizes deal on unprecedented military aid to Israel

The United States has signed an agreement with Israel under which it will provide its Mideast ally with $30 billion in military aid over the next ten years, a 25% rise on the current level.

A memorandum of understanding on the aid package was signed in Jerusalem Thursday by Nicholas Burns, the U.S. undersecretary of state for political affairs, and Israeli Foreign Minister Aharon Abramovitz.

The $3 billion annual payments will start in October 2008. Unlike other recipients of U.S. military aid, Israel will be authorized to convert 26.3% of the funds into local currency to be spent on the national arms industry, while the remainder will be used to buy U.S.-manufactured arms.

After the signing, Burns justified the record-high level of arms money, saying: "The United States faces many of the same threats from the same organizations and countries as Israel does, and so we felt this was the right level of assistance." RIA Novosti