TEL AVIV (Oct. 12)
The Soviet Embassy here opened negotiations with Israel today for the purchase of $1,500,000 worth of Israel-textiles and medicines. The purchases will be made in the context of last year’s Israeli-USSR agreement, under which the Moscow Government sold to Israel some Russian properties in Israel valued at $4,500,000. Under that pact, Israel was to pay one-third in cash, a third in services and the remainder in goods.
Official circles in Israel expressed the hope that these negotiations may lead the way to the resumption of normal trade relations between the two countries. The Soviet Union had been supplying Israel with oil in return for citrus products but rescinded the barter agreement in retaliation for Israel’s part in the Sinai campaign in 1956.