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Export-import Bank Denies It Will Cancel Remainder of $1.00,000,0000 Loan to Israel

A spokesman for the Export-Import Bank today denied a London report that the Bank would cancel further withdrawals from its loan to Israel because of American displeasure at Israel over the Arab refugee question.

He said there was absolutely no foundation to stories that the Bank would withhold the remaining $49,000,000 of the $100,000,000 loan. He added that the Bank considered itself to be under firm commitment and that the remainder of the loan already been earmarked and will be made available to Israel as previously agreed. The loan was negotiated for the purchase in the United States of equipment and materials for housing, agricultural, and industrial development in Israel.

A spokesman for the State Department declared today that unjustified criticism was directed at the American consular service in Jerusalem by Mayor Stanley W. Church of New Rochelle, N.Y., when the latter said yesterday that he and 11 other ?on-Jews on a study tour of Israel were refused permission to enter the Old City of Jerusalem. The Department said that all possible action has been taken by the consulate to facilitate visits to the Holy City but that such traffic was made difficult by the many restrictions imposed by both Arab and Jewish authorities.

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