Middle East Free Trade Area (MEFTA)

• A Clean Break:
  A New Strategy for Securing the Realm
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• Following is a report prepared by The Institute for Advanced Strategic and Political Studies’ "Study Group on a New Israeli Strategy Toward 2000." The main substantive ideas in this paper emerge from a discussion in which prominent opinion makers, including Richard Perle, James Colbert, Charles Fairbanks, Jr., Douglas Feith, Robert Loewenberg, David Wurmser, and Meyrav Wurmser participated. The report, entitled "A Clean Break: A New Strategy for Securing the Realm," is the framework for a series of follow-up reports on strategy.

Israel has a large problem. Labor Zionism, which for 70 years has dominated the Zionist movement, has generated a stalled and shackled economy. Efforts to salvage Israel’s socialist institutions—which include pursuing supranational over national sovereignty and pursuing a peace process that embraces the slogan, "New Middle East"—undermine the legitimacy of the nation and lead Israel into strategic paralysis and the previous government’s "peace process." That peace process obscured the evidence of eroding national critical mass— including a palpable sense of national exhaustion—and forfeited strategic initiative. The loss of national critical mass was illustrated best by Israel’s efforts to draw in the United States to sell unpopular policies domestically, to agree to negotiate sovereignty over its capital, and to respond with resignation to a spate of terror so intense and tragic that it deterred Israelis from engaging in normal daily functions, such as commuting to work in buses.

To reinforce this point, the Prime Minister can use his forthcoming visit to announce that Israel is now mature enough to cut itself free immediately from at least U.S. economic aid and loan guarantees at least, which prevent economic reform. [Military aid is separated for the moment until adequate arrangements can be made to ensure that Israel will not encounter supply problems in the means to defend itself]. As outlined in another Institute report, Israel can become self-reliant only by, in a bold stroke rather than in increments, liberalizing its economy, cutting taxes, relegislating a free-processing zone, and selling-off public lands and enterprises — moves which will electrify and find support from a broad bipartisan spectrum of key pro-Israeli Congressional leaders, including Speaker of the House, Newt Gingrich.

Warren Christopher

THE AMMAN ECONOMIC SUMMIT: