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$5,000,000 Foreign Capital to Be Invested in Rayon Factory in Israel

The Israel Parliamentary Finance Committee has approved a proposal calling for the government to guarantee a $3,000,000 loan to a projected rayon factory in Israel which would be established with the investment of $5,000,000 in foreign capital and 1,000,000 pounds locally. The government will also participate in the company.

The plant, to be called Sehorith, will be established by a firm which already has 20 branches in various parts of the world. The company would be granted monopoly rights in the marketing of its products. Mapam leader Moshe Sneh voiced objections in the committee to the granting of “excessive rights to monopolistic capital.” He also insisted that the government not guarantee the $3,000,000 loan unless it received a 50 percent voice in the management of the corporation.