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Anglo-israel Financial Talks Deadlocked; Negotiations Suspended for Ten Days

As the second plenary session in the current Anglo-Israel financial talks took place here today, it was confirmed by Israel sources that the negotiations have reached a virtual deadlock.

The talks have been suspended for ten day while David Herowitz, director general of the Israel Treasury and head of its delegation, goes to the Continent — probably on Sunday — to meet with Israel Foreign Minister Moshe Sharett in Paris. Mr. Sharett is scheduled to stop off in the French capital en route home from Lake Success. Before today’s meetin Mr. Horowitz met with Chancellor of the Exchequer Hugh Gaitskell and E.L. Berthoud, Foreign Office Under Secretary for Economic Relations, in an attempt to break the deadlock.

The deadlock has developed out of Israel’s demand for complete liguidation within 18 months of the remaining 13,000,000 pounds ($36,400,000) in sterling assets which are still frozen. In addition, the Israelis are asking that Israel-owned securities, worth 5,000,000, pounds be sold and paid out to Israel within the next year. The British have offered to release half of the present balance in the next year.

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