Israel Cuts Export of Cotton Goods to U.s.; Yields to Washington

The Ministry of Commerce and Industry today ordered Israeli textile firms to discontinue further shipments of certain categories of cotton fabrics to the United States after the American Government lodged a protest over Israeli shippers exceeding the established quota according to the terms of an agreement between the two governments. The U.S. Government complained to Israel a few weeks ago that Israeli shippers had exceeded the quota.

(In New York, Israel’s Economic Minister, Nahum Shamir, pointed out that Israeli shippers had used about 25 percent of the cotton goods quota for the year beginning October 1, 1966 and that, due to strong demand for certain items, quotas of two individual categories had been exceeded. He stressed that Israel had never exceeded the quotas in any previous years since the agreement first went into effect in 1963. He said that Israeli and U.S. representatives would meet soon to negotiate a new agreement.)

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