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$35,000,000 Paid by Germany to Israel for Non-delivery of Arms

West Germany has paid Israel $35,000,000 as compensation for the portion of the weapons delivery which West Germany cancelled under Arab pressure, it was reported here today.

According to the report, the money was transferred to Israel two months ago but there was no official confirmation of the transaction. Haaretz, the independent daily, said the arrangement was confirmed unofficially.

Under the original arrangement, West Germany agreed to provide Israel with $80,000,000 worth of arms. A part was delivered between 1960 and 1964, when the transaction became public, infuriating the Arab countries. Under Arab protests, West Germany cancelled the remaining part last February.