Moscow Hearings on Israel Oil Suit to Be Resumed; New Arbitrator Named

In the wake of last week’s widely publicized deadlock in the Israeli suit against the USSR for damages resulting from a unilateral breaching of an oil-for-citrus contract, the Israel Government was notified today that a substitute arbitrator it had nominated has agreed to enter the case.

The suit of two Israeli oil companies, against the Soviet oil trust for breaching the oil delivery contract during the Sinai operation of October 1956. has been plagued by delays of all sorts since it began last December. Finally, after waiting weeks to hear whether Prof. J. Nesterov. its substitute arbitrator, would accept the post, the Israeli legal delegation went home last week. The major cause of delay was the illness of one arbitrator, M. Ramaitzov, who will be replaced by Prof. Nesterov, chairman of the All-Soviet Chamber of Commerce.

Prof. Neaterov’s acceptance, however, does not mean that the hearings before the Moscow Chamber of Commerce will resume immediately. Moscow cabled that J. Genkin. another member of the three-man panel, has fallen III. It is hoped here that the trial–in which over $2, 000, 000 in damage claims is at stake–will get under way again some time next month.

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