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German Govt. Announces First Credit of 75,000,000 Marks to Israel

The German Government announced here today that it has extended a “first credit” of 75,000,000 Deutschmarks ($18,750,000) to Israel. The credit, according to the announcement, will be paid out of the current, 1965 budget.

A promise to negotiate an economic agreement with Israel was made by the Government last spring, when it decided to establish diplomatic relations with Israel. A Government spokesman announcing the establishment of the credit today said that German-Israeli negotiations had not been conducted earlier and were delayed “due to political events in both countries.” Germany held national elections in October, returning to power the Government headed by Chancellor Ludwig Erhard, while Israel held general elections in November, bringing back into power the present Prime Minister, Levi Eshkol.

The Government spokesman said that official German-Israeli economic negotiations will start next month.

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