Israel Government to Receive 51 Percent of Potash Company

Representatives of the Israel Government and of the Palestine Potash Company today told a press conference here that under the terms of the agreement reached between the two with regard to the reorganization of the company, 51 percent of the shares will belong to the Israel Government and 49 percent to private persons. The new company will receive a $3,500, 000 loan, of which $2,500,000 will come from the American Export-Import Bank. Half of the management will be appointed by the Israel Government.

Headquarters of the potash company will be in Israel. Work at the potash plant, which has been suspended since the outbreak of the Arab-Israel war, will be resumed soon, Fritz Naftali, Israeli Minister without portfolio, told the journalists. He emphasized that the new company will not satisfy itself with the exploitation of the Dead Sea minerals as hitherto, but will also undertake new work. The company will change its name, he said.

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