The State Department announced today that the Government of Israel and the American Government completed an agreement on July 23, 1952, where by Israel became eligible to receive military assistance on a reimbursible basis from the United States under the provisions of the Mutual Security Act of 1949, as amended.
Israel is now entitled to make applications for the purchase of munitions from United States stocks “in return for payment at fair value.” Israel presented its official request for military assistance early this winter. Other governments in the Near East already eligible to purchase equipment on a reimbursible basis, the State Department said, are Egypt and Saudi Arabia.
The permission granted by the United States to Israel to purchase arms from this government has nothing to do with the application of Israel for grant aid provided under the terms of Paragraph 202 of the Mutual Security Act of 1952. This was learned today when the State Department pointed out that under the new government Israel will have to pay for everything it gets and that the arrangement merely means that Israel can buy directly from the government rather than from private American companies.
It is considered a step forward because Israel may now be able to buy certain categories of munitions previously unavailable. But it is not the implementation of the free arms provided in the Mutual Security Act and requested by Israel last February 7.
A spokesman for the Department of Defense said that the Department does not consider Israel to be earmarked as a country guaranteed free arms under the Mutual Security Act. However, funds are contained in the Act, the spokesman said, for both Israel and the Arab states totalling approximately $50,000,000 and could be extended if recommended by President Truman, following consultation with the Secretary of State, Joint Chief-of-Staff, and the National Security Council.
Before an outright grant would be made, it was learned, a bilateral agreement must be signed. Then an American military mission would go to Israel and survey the Israel Army and the defense needs of the state. The mission would then return and its recommendations would be screened by the joint Chiefs-of-Staff. Actually, however, the State Department has not yet indicated officially its views on the extension of such free grants of arms to Israel.
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