JERUSALEM (Jul. 10)
More than half the sum expected from German reparations by the Israel Government will be spent for the development of Israel’s basic industry, financial circles here said today.
These circles said that the basic industries which would benefit most from reparations would be electric power, transport and construction. Manufacturing plants would receive some machinery and raw materials, while consumer goods would make up the balance of the German payments.
According to a tentative plan which is already in existence, these circles said, $340,000,000 would be spent in Germany to purchase capital goods, while another $100,000,000 would be spent on capital goods in other countries for the use of Israel’s basic industries. In addition, some $65,000,000 would be spent on transportation charges. The largest single sum will be spent on agricultural development, it was said. Of this, $70,000,000 will be used for irrigation purposes alone.