WASHINGTON (Sep. 5)
Implementation of the United Nations resolution which directed Egypt to end its restrictions on the use of the Suez Canal was discussed today by Israel Ambassador Abba Eban and Assistant Secretary of State George C. McGhee at the State Department. They also discussed developments concerning the Palestine Conciliation Commission and the Israel supply problem.
The State of Israel has made a payment of $1,148,476.96 to the United States Export-Import Bank as interest on the $135,000,000 loan which was extended to Israel. It was announced by a spokesman for the Israel Embassy that the Jewish State has so far used $75,000,000 of the loan for approved industrial and agricultural projects.
Payment on the principal will begin in the spring of 1952 and will continue for 12 years. Interest on the loan is three and one-half percent, paid semi-annually. The loan consists of $100,000,000 extended in January, 1949, and $35,000,000 more in January, 1951.
Israel’s military achievements are mentioned in an “armed forces talk” prepared by the Department of Defense for delivery by officers to members of the American Army, Navy, Air Force, and Marine Corpe. The subject matter deals with the countries of the Near East and the threat of Communist aggression.