U.S. Opens Talks in Israel on Use of Local Excess Currency

A team representing the United States Agency for International Development has opened discussions in Israel on possible uses of excess local currency in Israel owned by the United States Government, it was announced here today.

One channel to be discussed will be the use of U.S. -owned Israel pounds to finance procurement of Israel manufactured commodities for American aid programs in other countries. Where the production of these commodities involves components for which the manufacturers pay dollars, the United States will consider reimbursement of the dollar amount, it was stated.

The proposal under consideration is expected to be advantageous to both countries. The United States would save dollars in its aid procurement, and the supplying country would be able further to develop its export industries. Similar discussions already have taken place in India and Pakistan, where the U. S. Government also holds accumulations of local currencies, surplus to its needs. These currencies are generated as a result of U. S. aid programs.

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