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French State-owned Company Ends Operations in Israel; Bows to Arabs

The decision of the Renault company to end operations in Israel, reportedly because of Arab boycott threats, brought top level discussions in the Israel Government today.

The French firm, which is owned by the French Government, has a partnership with the Kaiser-Frazer operations in Israel and operates a plant in Haifa where assembly takes place with imported and locally made parts of the Renault Dauphine and other small automobiles which are exported to Asia and Africa.

Although the official reason given for the decision to halt operations was economic considerations, it was known that the Arab Boycott Committee had threatened a complete boycott of all Renault imports unless the operations in Israel were stopped. Israel officials were reported as viewing the decision with gravity, particularly because the company is state-owned.