Three-year Production Goal Exceeded by Israel; Investments Rise

Israel has met and in some cases exceeded in three years, production targets set in a four-year forecast of industrial development published in 1957, Michael Tsur, director general of the Ministry of Commerce and Industry, reported today at a press conference.

He said the 1957 forecast for total investment in the 1956-1959 period was 435,000,000 pounds (about $220,000,000). and actual investment in that period was 563,000,000 pounds (about $290,000,000). Industrial output was expected, in 1959, to reach 194,000,000 pounds (about $100,000,000) and actually totaled 259,000,000 pounds (about $130,000,000) he reported.

As an example of an unexpected success, Mr. Tsur disclosed officially that in 1953, the Israel Government approved the establishment of two tire factories by what he called “an administrative misunderstanding.” The intention had been to approve building of one tire factory in the belief that one plant could easily supply more than the estimated 3,000 tons of tires Israel then needed annually.

The two plants, he said, were currently manufacturing four times the estimated original annual need and that the companies are successfully marketing abroad the surplus over domestic needs. He added that the two companies will soon boost output by percent, which in turn will make possible the establishment of various auxiliary industries.

He reported also that the textile industry, in which overproduction also was feared, was planning a 60 percent production increase in the coming year. He said it was found that at reduced prices considerable overseas markets were available for textile products but that a considerable expansion of capacity was needed to make price cuts possible.

NEXT STORY