Jewish Agency Adopts New Budget, Approves 10,000,000-pound Loan

The Jewish Agency executive, in plenary session last night, approved a 1956-57 budget of 157,125,000 pounds, including an increase of 13 million pounds asked by Dr. Giora Josephthal, Agency treasurer, to replace funds originally expected from the Israel Government for immigrant housing. The budget is expected to insure the reception of 45,000 immigrants this year.

The executive also approved a proposal to guarantee a ten-million pound bond issue to be floated by the Keren Hayesod, financial arm of the Agency. The bonds would bear six and one half percent interest and would be replayed within eight years at a rate tied to either the Israel cost of living index or the dollar rate.

In a lengthy report today, Premier Ben Gurion told the Agency session that the situation of Israel as a result of the Soviet and Angle-American “race” to supply the Arabs with arms was far graver than people abroad realized. He appealed to the Zionist movement to help strengthen Israel, asserting that a well armed Israel would not be able to fight off Arab aggression but would be a stabilizing factor in the Middle East because the Arabs would not dare attack if Israel were well prepared.

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