Israel moved somewhat nearer to a favorable balance of trade during the first 11 months of 1953, it was indicated here today with the release of a temporary trade balance for the January-November, 1953, period. Imports dropped by some 25,000,000 pounds over the same period of 1952 while exports rose from 14,600,000 pounds in the first 11 months of 1952 to 19,000,000 pounds for the same months of last year.
The Cabinet this week-end extended the 80 percent premium for capital transfers in the form of hard currency from firms manufacturing industrial products for export to other sectors of the Israeli economy. In effect, this will extend the rate of 1.8 Israel pounds for each dollar earned to the citrus, air transport and shipping industries. The transfer of funds by institutions, however, will continue to be made without premiums.
The extension of this rate to wider sectors of the economy was see here as another move in the direction of the establishment of a single exchange rate of 1.8 pounds to the dollar. It was also interpreted to mean a reduction in the heavy government subsidies to essential imports which were provided by the assignment of the preferred exchange rate.
Citrus producers hailed the move as one which will make it possible for them to compete favorably with Spanish orange growers, who have provided severe competition in world markets. The citrus industry will not receive an immediate benefit from the new exchange rate because the citrus board owes the government some 3,000,000 pounds which will be repaid from citrus dollar earnings.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
