HAIFA (Sep. 25)
The French Renault automobile firm, which last year broke its contract with the Kaiser-Frazer assembly plant here, under pressure from the Arab League, has agreed to pay the firm nearly $1,000,000 damages for breach of contract, it was learned today. Officials of the Haifa company refused to comment on the reported agreement on the grounds that the agreement ending the dispute between the two firms also included a provision that details of the accord should not be published.
The agreement, which was reportedly endorsed by the Israel Government, also in-includes a provision whereby the Haifa firm continue to receive spare paris for Renault models already in operation in Israel.
Kaiser-Frazer had demanded $2,000,000 in damages from the French firm, whose sales to Arab countries have not increased since it was removed from the Arab League boycott list.