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Chad Received $1m Loan from Israel

Israel gave the Chad government a $1 million loan to try to keep that country from breaking diplomatic relations with Israel, the newspaper Maariv reported today. According to the paper’s Paris correspondent who quoted West German sources, the loan was arranged through the Handelsbankun of West Germany and was disguised as a German bank loan. President Francois Tombalbaye of Chad announced last week that he was severing diplomatic ties with Israel.

The Maariv reporter claimed that Israel knew of the impending break in advance and the reason given by Chad was its difficult financial position. Israel sent a special emissary to West Germany to arrange the loan, the paper said. It added that Chad has begun repayment as required by the agreement. According to Maariv, many experts warned that the loan could only postpone the break by Chad.