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Loan Guarantees for Settlement of Soviet Jews
Should the U.S. Play a Role in this Humanitarian Enterprise?

Only a few months ago, the world was able to watch the thrilling spectacle of the airlift of 15,000 Ethiopian Jews to Israel. But the rescue of the Ethiopians, heartening and important though it is, is really only a "sideshow" in the ongoing saga of this ingathering. The greatest challenge facing the Jewish Sate today, almost even more daunting than the implacable hostility surrounding Israel and the ever-present military challenge, is the ingathering of the Soviet Jews.

What are the facts?

For years it had been one of the great policy objectives of the United States vis-à-vis the Soviet Union to allow the free emigration of its citizens. Of all the nationalities in the Soviet Union, the Jews are by far the most endangered and the most anxious to leave the country. Finally, the gates have begun to open — a little slowly at first, but then wider and wider. Under the U.S. immigration laws, only a small number of these Soviet fugitives are able to come to our country. The vast majority plan on settling in Israel. And that is as it should be. Because the state of Israel has one single purpose: the ingathering of Jews, especially those that are persecuted and who are in need, from all corners of the world. And it doesn't make any difference, of course, whether they are "Europeans" or whether they come from the Arab countries, from Asia or, as now in the case of the Ethiopian Jews, whether they are black Africans.

So far, about 300,000 Soviet Jews have arrived in Israel. A total of about 1 million are expected within the next three years. Since the population of Israel is about 5 million, that is equivalent to the United Sates having to absorb about 45 million new immigrants — more than the population of the states of California and New York combined — and that within a 3-year period! And the United States is a rich country and an immensely large one. Israel is a poor country. Its per capita income is less than $10,000 per year and more than one-half of the country's budget is dedicated to defense. And it's small: the size of the country is one-half that of San Bernardino County in California. The Soviet immigrants come virtually penniless, because they may not take more than $100 out of the country. There are no ready jobs, and there is no ready housing. It is a daunting and almost overwhelming task to absorb these people. It is estimated that it will ultimately cost more than $50 billion.

But Israel is determined to overcome this challenge, to build the 260,000 new housing units that will be needed, to build the 12,000 new classrooms, to create the 360,000 new jobs, and to integrate the 1 million Soviet Jews into Israeli life, just as it has done with over 1 million previous immigrants. Israel and world Jewry will carry virtually all of the cost of this absorption and will create the massive additional infrastructure needed to sustain a population increase of over 20% in just two or three short years. In this fiscal year alone, more than $6 billion or 20% of Israel's budget will go toward absorption of immigrants. The American Jewish community will have raised more than $6 billion and has agreed to co-sign a further $900 million guarantee to help with these costs. 

There is one urgent matter, however, in which the assistance of the United States will be needed. Israel will ask the United States to guarantee (not to grant, not even to lend) $10 billion for housing, funds that will be needed, in $2 billion yearly installments, over a 5-year period. This is a financial transaction that is virtually without risk and at virtually no cost to the United States. In contrast to many of the developing countries, Israel has never defaulted on a loan and has never asked for "forgiveness" of any indebtedness. It has a perfect payment record. American guarantees of this $10 billion loan are absolutely required in order to make the orderly absorption of Soviet Jews into Israel possible. 

The matter of the loan guarantee has been deferred for 120 days, at the request of the President. In view of the cataclysmic events in the former Soviet Union, the need for this guarantee is now more urgent even than before. As will all other financial assistance to Israel, the funds under this guarantee will be used only within Israel's 1967 borders. No funds will be used to settle Jews in Judea/Samaria (the "West Bank"). But the United States must focus on the humanitarian nature of this enterprise. It must not be "linked" and must not be conditioned upon any political issues, such as the procedural questions of the peace process, the question of settlements in the administered areas, or any other "concessions." Israel, like the United States, is a country of immigrants and a beacon of liberty and of hope. The United States should approve the $10 billion loan guarantee to Israel — its best friend and staunchest ally in the world — and should assist, virtually without risk and expense to itself, in one of the greatest liberation movements of our times: the exodus of 1 million Soviet Jews and their orderly absorption in Israel. 

This ad has been published and paid for by

Facts and Logic About the Middle East
P.O. Box 590359
San Francisco, CA 94159

Gerardo Joffe, President

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