Senate Group Questions Allocation of Counter Parties in Israel

The U.S. Informational Guaranty program for Israel has been suspended and Robert M Beers, chief of the IMG Division of the United States Information Agency is on his way to Israel, Government officials revealed today. He is due here on November 29

This development resulted from controversial recommendations made by Bernard Katzen a consultant to Secretary of State Dulles, on use of $3,525,000 in Israeli pounds accumulated under the IMG program. An issue of whether Mr Katzen resorted to political patronage in distributing the U.S. funds to various private undertakings in Israel was raised in Congress Subsequently, a Senate Foreign Relations Subcommittee demanded a complete review of the Katzen operation and IMG functions in Israel.

Mr. Beers informed Chairman Mike Mansfield of the Senate Foreign Relations Subcommittee, when questioned about the Katzen recommendations, that the American program for Israel had been placed in “suspense” and was undergoing review within our agency and in the Sale Department.”

The United States Information Agency has not issued any new IMG contracts for Israel since the Katzen matter was raised by the Senate body, a government source said The whole Israeli program was described as suspended and under review.

Last year Mr Katzen, a New York attorney and Republican National Committee consultant on Jewish affairs. was sent to Israel by Mr. Dulles to recommend beneficiaries of Israeli pounds that had accrued to the account of the U S Treasury through IMG activities in Israel.

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