Israel Cabinet Hears Progress Reports on Bond Drive in America

The first $50,000,000 has already been received from the Israel Bond Drive in the United States, Finance Minister Eliezer Kaplan reported to the Israel Cabinet last night. At the same session, Henry Montor, executive officer of the American Financial and Development Corporation for Israel, reported to the Cabinet on the results of the first phase of the bond campaign in the United States.

Mr. Montor told the Israel Ministers that the “people of America have given ample evidence of their faith in Israel’s future.” He noted that it is expected that three times as much money will be raised on the sale of Israel bonds as on all other foreign bond sales in the U.S.

Mr. Kaplan presented a detailed picture of the expenditure and allocation of funds raised through the bond drive. A total of $13,060,000 was allocated to industry and mining, including the exploitation of peat deposits in the Huleh area, and the mining of phosphates, kaolin, copper, manganese and limestone in the Negev and other regions. For the development of electric power the Israel Government is spending $10,100,000.

In addition, the Finance Minister said, $12,128,000 has been allocated for agricultural expansion and irrigation purposes; $5,734,000 for transport and communications, including the building of additional railway trackage and harbor development, $6,250,000 for housing in industrial areas; and, $2,940,000 for the expansion of existing hotels and the addition of new tourist facilities.

Despite the emergency situation of Israel’s economy, the first distribution of funds derived from the sale of bonds proves Israel’s determination to invest these funds in productive enterprises which are designed to improve the country’s balance of payments, speed economic absorption of the immigrants and in general make the Jewish state self-sufficient, he pointed out.

The Finance Minister also announced that Israel will celebrate Industrial Week starting next Sunday. Premier David Ben Gurion will launch the celebrations when he officially opens the new Petach Tikvah plant of the General Tire Company on Sunday, Mr. Kaplan said.

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