since argued that their acceptance of full withdrawal from the Sinai as part of these accords and the eventual Egypt–Israel peace treaty fulfilled the Israeli pledge to withdraw from Sinai. President Carter's support for a Palestinian homeland and for Palestinian political rights particularly created tensions with the Likud government, and little progress was achieved on that front. Reagan administration (1981–1989) Israeli supporters expressed concerns early in the first Ronald Reagan term about potential difficulties in US–Israeli relations, in part because several Presidential appointees had ties or past business associations with key Arab countries (for example, Secretaries Caspar Weinberger and George P. Shultz were officers in the Bechtel Corporation, which has strong links to the Arab world; see Arab lobby in the United States.) However, President Reagan's personal support for Israel, and the compatibility between Israeli and Reagan perspectives on terrorism, security cooperation, and the Soviet threat, led to considerable strengthening in bilateral relations. In 1981, Weinberger and Israeli Minister of Defense Ariel Sharon signed the Strategic Cooperation Agreement, establishing a framework for continued consultation and cooperation to enhance the national security of both countries. In November 1983, the two sides formed a Joint Political Military Group, which meets twice a year, to implement most provisions of that agreement. Joint air and sea military exercises began in June 1984, and the United States constructed two War Reserve Stock facilities in Israel to stockpile military equipment. Although intended for American forces in the Middle East, the equipment can be transferred to Israeli use if necessary. US–Israeli ties strengthened during the second Reagan term. Israel was granted "major non-NATO ally" status in 1989, giving it access to expanded weapons systems and opportunities to bid on US defense contracts. The United States maintained grant aid to Israel at $3 billion annually and implemented a free trade agreement in 1985. Since then all customs duties between the two trading partners have been eliminated. However, relations soured when Israel carried out Operation Opera, an Israeli airstrike on the Osirak nuclear reactor in Baghdad. Reagan suspended a shipment of military aircraft to Israel, and harshly criticized the action. Relations also soured during the 1982 Lebanon War, when the United States even contemplated sanctions to stop the Israeli siege of Beirut. The US reminded Israel that weaponry provided by the US was to be used for defensive purposes only, and suspended shipments of cluster munitions to Israel. Although