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Full Version: US may end loan guarantees to Israel
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US diplomatic efforts are reportedly failing in Tel Aviv and that's lead to a recommendation from the State Department to end the U.S. loan guarantee program to Israel at the end of the year.

Haartez has reportedly obtained copies of two versions of an internal report from the Office of Inspector General for the U.S. State Department and is reporting the US embassy in Israel is believed to have failed
completely in it's public relations efforts during the Obama administration.

Reportedly, The State Department's report says US diplomats in Tel Aviv face intense challenges generated by Israel's current government and negative public opinion toward President Obama. And that much of
the Israeli public is suspicious of U.S. efforts to promote negotiations to establish an independent Palestinian state.

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Larry Birns, Director of the Council on Hemispheric Affairs, says Israel has a lot to worry about .

Birns predicts if Obama is re-elected to a second and last term as President in 2012, he will become more outspoken regarding Israel.

In 2002, the US granted Israel the loan guarantee package promising funding of up to 9 billion in world banks to help it's economy over the recession. A condition of the guarantees was that Israel would not use the money for construction in the settlements. The State Department's report says Israel's economy has stabilized and that
planning should begin now for orderly termination.