BONN (Jul. 8)
Informed sources here said today that the principal reason Israel received the recent order for $3,000,000 worth of mortar shells, a transaction which led to the downfall of the present Israel coalition Government, was because the Israel price was 30 percent under that quoted by other bidders.
This was reported to be the explanation being given by German officials to the Arab countries who also have been told that West Germany will buy arms from them, as well as from Israel, if they can meet conditions of the Bonn Defense Ministry. These conditions are that the quality is good and the price is competitive. The unofficial inquiries made by Arab countries about the Israel arms agreement were not expected to be followed by official protests.