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Israel Minister Discusses Loan in Washington for Development of Industry

Pinchas Sapir, Israel Minister of Finance, said today that he discussed with U.S. officials the application of Israel for a $39,000,000 loan for development of industry, communications, and electrical power as well as $70,000,000 sales agreement for surplus commodities.

The surplus commodities would be sold over a period of two years under Public Law 480. Payment in dollars might be required for a portion. Mr. Sapir said he discussed the payment question and mentioned the pressures on the Israeli economy including Israel’s unique defense situation.

The Israeli Minister met with Secretary of Agriculture Orville Freeman, Administrator, David Bell, of the U. S. Agency for International Development, and some officials of the State and Treasury Departments. He obtained an impression that they understood the Israeli view on the development loan and the commodity purchases desired by Israel. The sales agreement would cover two years while the loan would be extended in fiscal year 1966.

Announcement was made here by Mr. Sapir that the Development Corporation for Israel, the American agency now selling Israeli bonds, will this week extend its operations to underwrite other Israeli equities beginning with the Industrial Development Bank of Israel and the Israel Electric Corporation. Necessary legal steps are being taken by the Development Corporation, he said.

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