NEW YORK (Oct. 6)
Private American capital totalling at least $2,000,000 monthly has been invested in Israel during the past six months, according to Gideon Strauss, Israel Consul for Commercial Affairs in New York. Since December, 1948, American business interest in Israel increased noticeably after the first few months of Israel’s statehood, when conditions were unsettled by the war, Mr. Strauss reported.
Merchandise transfers for commercial distribution and subsequent investment of the proceeds in Israel accounted for about two-thirds of the $2,000,000 monthly investments. One-third was in the form of specific industrial undertakings, including more than 75 individual industrial and service projects totalling $3,800,000. These transactions were handled by the N.Y. Consulate General, and in some degree by the Los Angeles Consulate. In addition, Mr. Strauss pointed out that a number of projects were transacted directly between American investors and the authorities in Israel.
The transfer of capital in the form of goods is most desirable and ways have been found to tie this in with the interests of existing industries in Israel, Mr. Strauss said. He added that the flow of capital is encouraged by the Israel Government in every respect and that the Economic Department of the Jewish Agency in New York is active in stimulating investments and servicing prospective investors.