Israel: March 13, 2003



The 29 month war with the Palestinians has hurt the Israeli economy and cuts in the budget are being made. This includes a $730 million reduction in military spending over the next two years. Israel is trying to get billions of dollars in "compensation" out of the United States for Israel's cooperation (that is, not attacking Iraq) in the upcoming war with Iraq. The US has not agreed to this, feeling that removing Saddam Hussein from power would eliminate a major enemy of Israel and that should be compensation enough.



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