US Aid Tied to Purchase of Arms

by Anne Davies

Just before Christmas, the US President, Barack Obama, signed into law one of his country's biggest aid pledges of the year. It was bound not for Africa or any of the many struggling countries on the World Bank's list.

It was a deal for $US2.77 billion ($3 billion) to go to Israel in 2010 and a total of $US30 billion over the next decade.

Israel is bound by the agreement to use 75 per cent of the aid to buy military hardware made in the US: in the crisis-racked US economy, those military factories are critical to many towns.