JERUSALEM (Jul. 1)
The sale on credit to Israel firms of industrial equipment and industrial raw material imported by the Israel Government as part of the German reparations was recommended today by the Economic Advisory Council here.
The Council took the stand that since the government does not intend to print more money, the shortage of means of payment will hinder industrial production and must be met by expanding credit. However, under the present conditions, the Israel banks have almost reached the limits of the credit they are able to provide, the Council pointed out.
The Economic Advisory Council also decided to call the governments urgent attention to the vital need for additional capital in industry, implementation of items in the Development Budget dealing with industry, and the necessity to prevent the growth of a “black market” in credits.