Truman Signs Mutual Security Aid Bill; Israel to Get $73,000,000
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Truman Signs Mutual Security Aid Bill; Israel to Get $73,000,000

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President Truman this week-end signed the Motuel Security Aid bill for 1953 which authorizes approximately $73,000,000 in financial assistance for Israel.

Congress is expected to act in the next few weeks on an allocation bill to implement the M.S.A. authorizations by actually providing for the funds.


Israeli Foreign Minister Sharett, speaking to reporters here, hailed the President’s signing of the M.S.A. bill and called it a “welcome step.” He added that the $73,000,000 in grants for refugees and technical aid would prove “eminently beneficial” to the Jewish State.

Israel’s new anti-inflationary compulsory savings program was described by Mr. Sharett to Henry A. Byroade, Assistant Secretary of State for Near Eastern Affairs, and to Willard Thorp, Assistant Secretary for Economic Affairs. Mr. Sharett accompanied by Ambassador Abba Eban, called on Byroade and Thorp at the State Department and later met with Treasury Secretary John W. Snyder at the Treasury Department.

Mr. Sharett also told reporters that the compulsory savings plan was “going well, achieving its purpose, and bringing the expected results.” He said that it was bolstering the value of the Israel pound. It is intended, said the Foreign Minister, not to subject the deposits of foreign investors held in Israel banks for investment purpose in Israel to the provisions of the compulsory loan.

Progress of the Israel bond campaign was described to Sec. Snyder by Mr. Sharett who told Sec. Snyder that bond subscriptions now amount to $125,000,000 with $75,000,000 in cash sales. He said later that Sec. Snyder had expressed interest in the bond campaign.

In his talk with Mr. Thorp, the Foreign Minister discussed Israel’s economic problems. He told Thorp about projects Israel hopes to undertake with the new mutual security assistance funds. They talked about the general prospects for Israel’s economic development and progress in industrial, agricultural, and other fields. Mr. Sharett reviewed philanthropic activities on behalf of Israel and reported that Thorp was “impressed.”

Mr. Sharett also met with Byroade, who returned to Washington last week from a visit to Israel and the Near East. Mr. Sharett said they compared notes on Byroade’s “impressions.” They briefly discussed the Arab-Israel situation and, Mr. Sharett told reporters afterwards, their consensus was that it would take time for peace to come. Mr. Sharett added that although Byroade was formerly director of the Bureau of German Affairs of the State Department and therefore concerned with German reparations, they did not discuss the reported German settlement offer to Israel.

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