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Today's paper. Last Updated: 06/02/2012

U.S. Allots Less to Former Soviet States

WASHINGTON -- U.S. President Bill Clinton's administration is cutting its 1995 foreign aid request to $7.45 billion, down from $8.1 billion granted by Congress for this year, with a large decrease in aid to former Soviet states.


The request is for economic assistance to be distributed by the U.S. Agency for International Development, or USAID, in the U.S. government's fiscal year beginning Oct. 1. An additional $2.1 billion is being sought for the World Bank and other multilateral organizations that make development loans.


In the request, aid to the republics of the ex-Soviet Union is down sharply: $900 million instead of $1.2 billion. Larger sums discussed for Russia, Ukraine and others are not included.


For Eastern European countries formerly under Communist rule the administration is asking for $380 million, down from $598 million.


The military segment of the 1995 aid request is for $3.2 billion, compared with $2.5 million for this year.


USAID figures made available Monday showed the biggest sums as usual being sought for Israel and Egypt.


The administration is asking $1.8 billion in military aid and $1.2 billion in economic aid for Israel. For Egypt, the figures are $1.3 billion and $817 million.


The Clinton administration is proposing a restructuring of economic aid, which has been based on a law 33 years old. It plans to close 21 of its missions by 1996 and is asking Congress to simplify the goals of its spending.


"The Foreign Assistance Act of 1961, based largely on Cold War priorities, is no longer a suitable framework for foreign policy objectives," USAID said in a statement last week.


Some of the larger requests are for Latin America: $151 million for Peru, up from $147 million this year, and $134 million for Bolivia, from $113 million. In Europe, the administration wants $107 million for Turkey, down from $121 million. For Greece the administration is asking $50 million, the same as last year.




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