Eban to Discuss U.S. Aid to Israel with State Department

Israel Ambassador Abba Eban will discuss with the State Department the various forms of aid which Israel hopes to receive from the United States under the fiscal 1960 program, it was learned here today.

Israel Embassy sources, in commenting today on the Administration’s announced proposal to case Israel out of the 1960 fiscal year special assistance grant-in-aid program. Said that, of the U.S. Government aid received by Israel in fiscal year 1958, and so far in 1959, the major part came from the Development Loan Fund, the Surplus Commodity sales program, and the Technical Assistance program.

The sources said it is noted with gratification that these programs will continue in 1960 None of these involve dollar repayments, and the Israel pounds available under the Development Loan Fund and Surplus Commodity program are in a large measure made available for Israel development projects.

In the past two years, only $15,000,000 came from special assistance programs, the Embassy sources pointed out. They added that, nevertheless, these sums, though relatively small, were an important part of the structure of the whole aid program, and had a sort of pump-priming effect.

Israel has not yet discussed the detailed structure of the 1960 fiscal program with the United States, the Israeli sources said. They said that, while Israel will probably agree that the bulk of the U.S. aid program should again come from the Development Loan Fund the Agricultural Commodities program and Technical Assistance, Israeli experts believe that, not with standing the increase of Israeli exports, a further program under the grant-in-aid special assistance item would be essential, so as to preserve Israel’s economic progress which the United States is doing so much to promote.

It is expected that the structure of the fiscal 1960 program will be further discussed in mid-April between Ambassador Eban and the Department of State, and that detailed proposals under all three headings will be submitted.

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