WASHINGTON (AP) _ The Clinton administration welcomed an Israeli proposal that U.S. aid to Israel be cut from $3 billion to $2.4 billion over 10 years.

Israeli Finance Minister Yaacov Neeman outlined the Israeli proposal Wednesday to administration officials and to members of Congress.

``We welcome the Israeli government's initiative on this, and we will be working closely with Israel and the Congress as the concept develops,'' State Department spokesman James Foley said.

The plan calls for an increase in military aid, but this would be more than compensated for by reductions in economic assistance. Israel has been receiving $3 billion in combined economic and military assistance for years, far more than any other country.