WASHINGTON (Jun. 11)
Chances for U.S. economic aid to Israel appeared dim today when it was learned that the Export-Import Bank had discouraged the Provisional Jewish Government from making a formal application for a loan at the present time.
An agent of the Provisional Government of Israel has made informal overtures to the Bank to secure a loan of $100,000,000 to be used for resettlement, irrigation projects and general economic rehabilitation, it was reliably learned here. A formal application was discouraged, however, until such time as the political and military situation in Palestine crystallizes somewhat.
presumably the basis of the attitude is the Bank’s charter requirement that reasonable assurance of repayment must exist before a loan can be made. Countries facing international military conflict–for example, China–are not considered good loan risks.