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Bank of England Approves $5,600,000 Loan to Israel for Trading

The Bank of England and the capital issues committee of the British Treasury have approved a loan of two million pounds sterling ($5.600.000) to Israel to finance the purchase of British capital goods, it was confirmed today.

Israel circles here hailed the decision as displaying a more favorable attitude toward Israel on the part of British economic authorities since, in the past, it was virtually impossible for Israel to make such financing arrangements here.

Financial circles linked the loan to a prospective purchase by Israel of 500 passenger buses from the Leyland Motors Corporation but Israel circles said there was no connection. A spokesman for the Leyland concern said that protracted negotiations with Israel transit authorities had not yet had any concrete results. If a deal is made, payment would be from proceeds of the new loan.

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