JERUSALEM (May. 18)
The Israel Cabinet today discussed the oil situation in the country in the light of Britain’s refusal to grant the Jewish State credits for the purchase of crude oil stocks. A special Ministerial committee was set up to prepare regulations for a fuel economy program.
(The Sunday Observer of London today reported that the request which Britain turned down was for a 5,000,000-pound loan which was to be used to purchase oil for Israel’s industry and irrigation system. The Observer stated that at the present time Israel has about one-month’s supply of oil on hand.)
An agreement has been reached between the Soviet Union and Israel for the sale of 500,000 cases of citrus fruits by the Jewish State, a spokesman for the Foreign Ministry told a press conference today. Although the agreement is not a barter arrangement and the Russians will pay cash, he said, Israel has agreed to buy oil products, wheat and rye from the Soviet Union. He also said that the U.S.S.R. may buy bananas from Israel.