Since then, Israel and Egypt have not been defeated once, although tensions between them remain high. In addition to the new reality of a Likud government in Israel, long-standing rivalries between Arab leaders have also played a role in blocking substantial progress in negotiations for a Geneva conference. In early November, Egyptian President Sadat, frustrated by the lack of movement, took a dramatic step by announcing on November 9 that he would be ready to go to Jerusalem. This step has puzzled the world. Sadat would try to break the deadlock and directly engage the Israelis in favor of a settlement on the Middle East, without any return speech at the Geneva conference. Sadat`s visit led to direct talks between Egypt and Israel in December, but these discussions did not yield substantial progress. In January 1978, the United States returned to a more important negotiating role. His efforts were conceded on September 17, when he, Sadat and Bégin signed two framework contracts at the White House. In the summer of 1978, when peace was tempting, negotiations got bogged down. To break the deadlock, Carter invited Egyptian President Anwar al-Sadat and Israeli Prime Minister Menachem Begin to a summit at Camp David and seized it for nearly two weeks, when the terms of a peace agreement were painstakingly worked out.
The agreement also led the U.S. to commit to multi-billion dollar annual grants to the Israeli and Egyptian governments, subsidies that continue to this day and are awarded as a mix of grants and plans to help purchase U.S. equipment. From 1979 (the year of the peace agreement) to 1997, Egypt received $1.3 billion in military aid per year, which also contributed to the modernization of the Egyptian army.  (this goes beyond economic, humanitarian and other assistance, which amounts to more than $25 billion.) Egypt, fed from the East until 1979, received American weapons like the M1A1 Abrams Tank, the AH-64 Apache Gunship and the F-16 fighter jet. By comparison, Israel has received $3 billion in subsidies and military aid a year since 1985.  A mechanism had yet to be put in place for Israel and Egypt to continue the talks begun by Sadat and Bégin in Jerusalem.  The Egyptian president proposed to Bégin that Israel insinuates a secret representative at the U.S. embassy in Cairo.
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