Jewish group to buy up property in Jordan

A rightwing Israeli organization plans to coordinate the purchase of dozens of properties in Jordan by European Jews, the group's head said on Monday while an Israeli paper reported possible U.S. fund cuts to Israel.

The Israel Land Fund, which promotes Jewish construction in Jerusalem and has bought land and dozens of houses in occupied Palestinian territory in the West Bank, is now eyeing property once owned by Jews in neighboring Jordan, its chairman Arieh King told AFP.

Although the plan is still in its early stages, it is likely to stoke tensions between Israel and Jordan, which signed a peace treaty in 1994.

"We are trying to bring Jews from European countries to purchase property which we locate in Jordan," King said, since Jordan's authorities would not allow Israeli citizens to buy property there.

In Jordan selling land to Israelis or someone acting on their behalf was illegal and punishable by death prior to1995. A milder statute that took its place still bars Israelis from buying, or leasing, Jordanian land.

"[I]t is impermissible for foreign persons or corporate entities that do not hold an Arab nationality to purchase, lease, or own directly or indirectly any immovable property in the kingdom" according to the Law on Economic Boycott and Banning Dealing with the Enemy (Article 6) without an exception approved by high level political authorization.

We are trying to bring Jews from European countries to purchase property which we locate in Jordan

Arieh King, Israel Land Fund

But King said that his group would coordinate attempts to purchase historically “Jewish-owned” land.

"There are thousands of Jewish properties in Jordan which were purchased during the Ottoman era and under the British mandate" which ended when Jordan became independent in 1946, King said.

"We have records of the ownership," he added. Jordan sequestered most Jewish-owned land following the creation of the Jewish state in 1948.

King's organization has angered Palestinians by purchasing property in the West Bank that Israel seized from Jordanian administration in the 1967 Middle East war and which far-right Jews are determined to retain as part of what they deem "Greater Israel," a concept that historically also included Jordan.

US may slash funds

Also on Monday an Israeli economic daily, commonly known as Calcalist and owned by the daily Yedioth Ahronoth, reported that the United States Congress is mulling slashing $1 billion off guaranteed loans to Israel, as a measure to curb the Jewish states' unyielding settlement expansion.

In 2003 the U.S. Treasury has allocated to Israel bank guarantees the value of $9 billion which Israel has used for investment and development activities including settlement expansion with a remaining total of $2.8 billion set to be used by 2011. Using such bank guarantees, Israel could obtain preferential terms on loans, such as low interest rates, from U.S. banks.

However, in hopes of resolving the settlement expansion dispute with Tel Aviv, the Obama administration could slash $1 billion which amounts to the value of Israeli development activities located outside the 1967 border.

The Israeli army radio recently announced that Israel's 2009 budget includes $250 million allocated for settlement expansion in the West Bank and has authorized investments and building projects in the area the value of $7.5 million, despite pressure from U.S. President Barack Obama for a settlement freeze.


<i>(With AFP)</i>