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Nasser Refuses Permission to Renault to Build Assembly Plant in Egypt

The United Arab Republic has refused permission to Regie Rentutilt–which canceled a contract with an Israel auto assembly firm under Arab pressure–to build an assembly plant in Egypt, it was reported here today.

The UAR was expected to authorize a West German or Italian auto firm to build an assembly plant in Cairo to service auto users in Arab countries in the Middle East.The UAR Government gave as the reason for the decision “the continuation of the Algerian conflict” and France’s “antagonistic attitude” toward the Arabs.