Representatives of the French and Israeli governments, negotiating here on a formula to reimburse Israel for 50 embargoed Mirage V jets, believe an agreement will be signed by the middle of the month, the Jewish Telegraphic Agency learned today. Leo Hamon, the French Minister of Information, said today that “there has been progress but negotiations are still continuing.” Israeli circles made a similar statement. Another meeting is scheduled for tomorrow. The JTA learned that at least three more sessions will be needed before an agreement is finalized.
The points under negotiation cover the rate of interest France will pay Israel for the planes that were embargoed by the late President Charles De Gaulle on the eve of the 1967 Six-Day War and whether the reimbursement will be in cash or in credits for Israeli purchases in French francs. If credits are agreed to, the two sides will have to decide the term of the credit and what products Israel will buy.
Joel Le Theule, a Gaullist Deputy and rapporteur of the French Parliament’s defense committee said today that he understood from his sources that France will pay Israel slightly under $68 million to buy back the supersonic jets at six percent interest. French banks now pay eight percent. The JTA learned from reliable sources that those figures were well below the amount agreed to by the French negotiators. (Israeli newspapers reported yesterday that according to Treasury circles in Jerusalem, France agreed to pay $75 million at four percent.)
The JTA learned that contrary to earlier expectations, the agreement will deal exclusively with “technical arrangements” and will not cover general political and economic matters outstanding between France and Israel.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
