Israel, S. Africa in Barter Deal

Israel has entered a barter deal with South Africa to exchange non-military aircraft for coal, Energy Minister Moshe Shahal announced Monday. Israel Radio said a South African coal mine would receive Astra executive jet planes manufactured by Israel Aircraft Industries (IAI).

Shahal insisted that the barter arrangement in no way contravenes the Inner Cabinet’s decision of September 16 to drastically curtail trade with South Africa and impose other sanctions against the apartheid regime.

About 250,000 tons of South African coal will be sold by the Israel National Coal Corp, to the Israel Electric Corp. The $7 million paid for the coal will be debited to the South African mine and credited to IAI. Shahal said this was not a “new sale to South Africa” but a new form of barter payment for the continuation of existing contracts for South African coal.

He said a similar Astra jets-for-coal deal is being negotiated with an Australian mine.

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