though it is not responsible for the loan, must sanction it before it can be effected.
The loan, it is understood, will not be floated publicly but will be taken up by banking houses and insurance companies. It is to yield four percent interest.
The city of Tel Aviv was compelled to seek the loan after it had failed to reach an agreement with the Palestine Government for a share of the 2,000,000 pound Palestinian loan which has been projected. The government failed to grant Tel Aviv a share of the loan although considerable portions of it have been allocated for water supply and other improvements in Jaffa and Jerusalem.
The municipality of Tel Aviv complained that the necessity for an independent loan imposed an extra burden upon the people of Tel Aviv because they will have to carry the double burden of interest payments on the general loan and on the city’s loan.
But despite the handicap of a private loan, the large sum coming to Tel Aviv will enable it to undertake extensive developments, employing numerous workers on roads, new buildings, and particularly on the construction of the industrial center which the municipality plans to erect in order to remove existing factories from the heart of Tel Aviv, thus carrying out the plans for an improved town.