    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
    [July 19, 1999]
    [Pages 1252-1254]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Joint Statement by the President and Prime Minister Ehud Barak of Israel
    July 19, 1999

        During several days of close consultations, the President and the
    Prime Minister conducted a comprehensive review of the U.S.-Israel
    bilateral relations, the peace process, Israeli as well as regional
    security, economic and scientific development and cooperation. These
    fruitful discussions have produced important agreements and
    understandings in all of these areas.
        Prime Minister Barak expressed his deep appreciation of President
    Clinton's special efforts to enhance the U.S.-Israeli relationship and
    advance the cause of peace in the Middle East.
        President Clinton and Prime Minister Barak have reached a broad new
    understanding that significantly enhances the already unique bilateral
    relations between the United States and Israel, and raises their
    friendship and cooperation to an even higher level of strategic
    partnership. This new partnership is designed to underpin their joint
    effort to put an end to the Arab-Israeli conflict and achieve a
    comprehensive peace in the Middle East.
        The President and the Prime Minister have agreed on the need to
    assign a top priority to the pursuit of peace in the Middle East. They
    have also reached a meeting of minds on the desirability of making an
    intensive effort to move ahead simultaneously on all tracks of the

    [[Page 1253]]

    peace process, bilateral and multilateral, as well as on the important
    role that would be played by the United States in support of the
    process.
        President Clinton assured Prime Minister Barak that the United
    States would be ready to assist and contribute in any way it can to
    achieving an historical reconciliation that will usher in a new era of
    peace, security, prosperity and cooperation in the Middle East. In this
    context, he reiterated the U.S. commitment to help Israel minimize the
    risks and costs it incurs as it pursues peace and affirmed the broad
    U.S. backing that would be accorded to Israel, to facilitate the pursuit
    of peace.
        Recognizing that the U.S.-Israel relationship serves as a
    cornerstone for pursuing peace, they vowed to strengthen and deepen this
    unique relationship, which is based on shared democratic values, bonds
    of friendship, common interests and joint cooperation in so many areas
    of human endeavor. President Clinton reiterated the steadfast commitment
    of the United States to Israel's security, to maintain its qualitative
    edge, and to strengthen Israel's ability to deter and defend itself, by
    itself, against any threat or a possible combination of threats.
        The United States and Israel will sign a Memorandum of Understanding
    (MOU) which will express their joint intention to restructure U.S.
    bilateral assistance to Israel. The MOU will state the United States'
    intention to sustain its annual military assistance to Israel, and
    incrementally increase its level by one-third over the next decade to a
    level of $2.4 billion subject to Congressional consultations and
    approval. At the same time, the MOU will provide for a gradual phase-out
    of U.S. economic aid to Israel, over a comparable period, as the Israeli
    economy grows more robust, less dependent on foreign aid, and more
    integrated in world markets.
        The two leaders also reviewed the status of the U.S.-Israeli defense
    relationship and agreed that existing defense channels of coordination
    and cooperation work effectively. These would have to be further
    consolidated and strengthened under a Defense Policy Advisory Group
    (DPAG) to meet the new challenges of WMD, counter proliferation (CP) and
    theater missile defense (TMD). The Group will coordinate and plan the
    cooperation between the U.S. Department of Defense and the Israeli
    Ministry of Defense.
        In addition, the two leaders agreed on the components of the $1.2
    billion military aid package for Israel that the Administration has
    already requested from Congress. The President assured the Prime
    Minister of his intention to work closely with the Congress to seek
    expedited action for funding, starting in FY 1999, for this package to
    support Israel as it implements the Wye River Memorandum. The package
    will have three components:
        Assistance to the Israeli Defense Forces as they carry out further
            redeployments, including projects which will be managed by the
            U.S. Army Corps of Engineers.
        Assistance in meeting Israel's broader strategic requirements,
            including Theater Missile Defense (TMD), helicopters, and
            communications equipment and munitions.
        Assistance in meeting the increased cost of Israeli counter-
            terrorism efforts.
        The two leaders also agreed on the importance of spreading the
    benefits of peace to all those who participate in the process. In that
    context, they expressed support for the $400 million in assistance to
    the Palestinian people and $300 million for Jordan that is part of the
    Administration's request to Congress to support implementation of the
    Wye River Memorandum.
        President Clinton and Prime Minister Barak agreed that Israel faces
    new challenges in the strategic arena, particularly the proliferation of
    weapons of mass destruction and ballistic missiles that threaten to
    undermine Israel's security. In this context, the two leaders agreed to
    step up the overall bilateral cooperation and coordination, as well as
    to implement a number of measures designed to help Israel meet these
    emerging threats:
        The United States will provide funding for Israel's acquisition of a
            Third Arrow battery that will enhance the protection of Israel's
            citizens from ballistic missile attacks.
        The United States and Israel will expand their collaborative efforts
            to develop new technologies and systems designed to deal with
            ballistic missiles.
        The two leaders will establish a Strategic Policy Planning Group
            (SPPG), composed of senior representatives of the relevant
            national security entities of both countries. It will be tasked
            to develop and submit recommendations on measures to bolster
            Israel's indigenous defense and deterrent capabilities, as well
            as the bilateral cooperation to meet the strategic threats
            Israel faces. The SPPG will also consider ways

    [[Page 1254]]

            to minimize risks and costs, to enhance Israel's security, and
            address its other needs related to national security which arise
            in the context of steps Israel might take to achieve a
            comprehensive peace. The SPPG will report to the President and
            the Prime Minister at four month intervals. The two leaders
            agreed to meet in joint session at regular intervals.
        Another area of mutual concern that was discussed between the two
    leaders was the growing threat of WMD terrorism. This was acknowledged
    to be an area in which both countries stood much to gain from each
    others knowledge and experience. In order to enhance their capability to
    deal effectively with this threat, it was agreed to sign a new MOU
    between their respective national security institutions. It would
    facilitate broad cooperation between the various government agencies in
    both countries in all areas associated with preparing and responding to
    WMD terrorism.
        One specific area of economic cooperation discussed between the two
    leaders pertains to water resources. They have noted the growing
    scarcity of water in the Middle East, and also recognized the potential
    inherent in bilateral, as well as regional, cooperation to turn water
    from a potential source of conflict into a force of regional stability
    and prosperity in the region. Toward that end, the United States has
    pledged to work with Israel, both bilaterally and with other regional
    partners and their private sectors, to promote the development of new
    and additional sources of water, including desalination, and to examine
    ways to transfer water to arid lands, and to manage existing water
    resources more efficiently. A joint task force will explore specific
    measures that could be carried out in this domain, and will submit its
    recommendations to President Clinton and Prime Minister Barak by the end
    of 1999.
        The President and the Prime Minister have also agreed that promoting
    tourism to Israel and the entire region presents a unique opportunity to
    promote cooperation and spread economic benefits to the peoples of the
    Middle East. Both sides agreed to explore specific steps to develop this
    unique potential together, and with other interested regional partners
    and their private sectors, beginning the fall of 1999.
        Finally, President Clinton and Prime Minister Barak agreed that
    scientific cooperation between Israel and the United States will benefit
    the peoples of both countries, as they enter the 21st century. In this
    context, they agreed to enhance cooperation in the peaceful uses of
    space. A joint working group of NASA and the Israel Space Agency (ISA)
    will be established to develop new areas of joint cooperation, including
    educational activities, scientific research and the development of
    practical applications in the peaceful use of space for the benefit of
    people around the world. The President also informed the Prime Minister
    that an Israeli astronaut and payload of Israeli experiments would fly
    on a shuttle mission in the year 2000.
        Upon concluding the Prime Minister's visit, the two leaders
    expressed their shared conviction that these meetings have laid the
    foundations for a vigorous effort to bring an end to the Arab-Israeli
    conflict, as well as for even closer American-Israeli ties based on the
    U.S. ironclad commitment to Israel's security. The two leaders called
    upon the other leaders of the region to lend their support to this
    effort to bring comprehensive peace, security, and prosperity to the
    peoples of the Middle East.

    Note: An original was not available for verification of the content of
    this joint statement.