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Refuting the Unofficial Israeli Arguments
"Israel 'promptly' paid compensation for the attack and accepted responsibility for the attack."
The following is taken from the IDF History Report, page 31 (emphasis added):
The Payment of Compensation
Immediately following the incident, Israel indicated her willingness to pay compensation both to the families of the deceased and to the wounded (letter of 10 June, 1967).
In June 1968 the Government of Israel paid compensation amounting to $3,323,000 to the families of the deceased, and in April, 1969, she paid $3,566,547 in the compensation to the wounded. In both cases Israel paid in full all claims issued against her. Her motivation was humanitarian.
In respect to the claims for damages suffered by the vessel, Israel refused to meet the expenses for the repairs since "we did not consider ourselves responsible for the chain of errors."
On 1 July, 1968 the Government of the United States of America filed claims totaling $7,644,116. This total was based upon an estimate of the sum needed to restore the vessel to operational capabilities (although vessels of this type had already been withdrawn from active service in the US Navy).
On 5 August, 1968 Israel replied that she would not assume responsibility for the damages demanded. Due to American pressure this letter was withdrawn and in September, 1968, Israel likewise proposed that the US claims be withdrawn. On 26th July, 1971 Israel submitted another letter to the United States in which she offered to pay a token sum of $100 000. The Americans refused this offer.
In the course of time the matter was forgotten until the Americans renewed their demands in the beginning of 1978. The Legal Advisor to the Government of the State of Israel appointed a small team to conduct negotiations with the claimant, and on 25 May 1978 the Americans were informed of the appointment of this team and of Israel 's willingness to open negotiations.
In January 1980 the US Department of State announced its intention to propose in the near future a date for the start of negotiations.
Contacts were renewed in December, 1980, during which it was agreed that Israel would pay compensation of $6 million to the US Navy for the damage inflicted on the ship. This compromise was reached with the agreement of President Jimmy Carter and it was agreed that the sum would be paid in three equal installments, beginning in January 1981.