Israel, Egypt Spared in Cuts of Foreign Aid

WASHINGTON —  House and Senate negotiators today approved a last-minute compromise trimming the U.S. foreign aid program to $13.37 billion but sparing Israel, Egypt and Cyprus from budget cuts.

Also receiving special consideration under the bill, although less than originally proposed, were the Philippines, Pakistan, Turkey, Greece and Northern Ireland.

The negotiators agreed to include the foreign aid package in a half-trillion-dollar spending bill for the fiscal year that began Oct. 1. That legislation is one of the last major items holding up adjournment of Congress.

The foreign aid package is $1.15 billion less than last year’s and $2.1 billion less than President Reagan requested.

James C. Miller III, Reagan’s budget director, told reporters that the Administration found the foreign aid compromise acceptable but that the President had yet to decide whether to veto or sign the full bill if Congress approves it.

Support for Egypt

Israel would receive $3 billion in military and economic grants under the bill, and Egypt $2.3 billion. Egypt enjoys much of the strong aid support in Congress because it is the only Arab country to have made peace with the Jewish state.

Cyprus, which would receive $15 million in economic aid, has strong lobbying support from the Greek-American community, which urges American pressure to reunite the island divided since Turkey invaded the northern part in 1974.

It is up to the Reagan Administration to decide how much aid to give countries that are unspecified in the bill. With the overall amount reduced because of budget constraints, each country can expect to receive less than the Administration proposed earlier this year.

Under the agreement, the Philippines would receive $200 million in supplemental economic aid. The bill thus appropriates the amount authorized earlier in response to a speech given to Congress last month by Philippine President Corazon Aquino.