WARSAW (Aug. 1)
Negotiations between the Polish Government and the Jewish Agency for Palestine for renewal of the transfer agreement have been discontinued, it was learned today. Dr. Werner Feilchenfeld, representative of the Jewish Agency, has returned to Palestine to report on the unsuccessful conversations. Halifin, the transfer organization of the Jewish Agency, will close its office here on Aug. 19, when the clearing agreement terminates.
The chief disagreement, it was reliably learned, arose over the Government’s refusal to take into account the export premiums paid by the Jewish agency to make possible the sale of Polish goods in Palestine at a reduced price, for which the agency and the Anglo-Palestine Bank assigned 80,000 zlotys ($16,000).
Another point of disagreement was that the Jewish Agency demanded that a ratio be fixed for transfer of special categories of capital to Palestine, while the government wished that the foreign currency realized from sale of goods be used to import goods from Palestine, to support relatives of Polish immigrants in Palestine and to encourage emigration of those without means to Palestine. Under the government’s proposal, there would be no possibility for transfer of Zionist funds and the fortunes of capitalist emigrants.
It is hoped that negotiations will be resumed shortly, but meanwhile transfer of funds to Palestine is possible only with the special permission of the Polish Currency Board.