Britain Guarantees $14,000,000 Export Credit; Repayment in 10 Years

The British Board of Trade announced today that it had guaranteed for Israel an export credit totaling 5,000,000 pounds sterling ($14 million). The credit will go to the Industrial Development Bank of Israel. The Board of Trade stated in its announcement that the loan had been granted after the visit here of Israel’s Minister of Commerce and Industry Zeev Shareff “as a guest of the British Government.”

Mr. Shareff announced the conclusion of his visit to Britain, which he called “successful” and, in a separate communique, spelled out the terms of the credit. “The Export Credit Guarantee Department of the Board of Trade,” the communique stated, “is being established in London by S.G. Warburg Co., Ltd., in conjunction with a consortium of banks. The credit will be available for contracts for capital plant and machinery of 1.25 million pounds ($3.5 million) or more.”

The Israeli Minister told the Jewish Telegraphic Agency that interest on the loan was fixed at 5-1/2 percent, that there was a two-year limit for Israel to make use of the fund, and that the period of repayment would be 10 years from the day the contract is signed. He said part of the loan may be used for bulk purchases of plant and machinery of a value of not less than 100,000 pounds ($280,000), and the time limit for such purchases would be different.

During his visit to this country, Mr. Shareff also met with Anthony Wedgwood Benn, Minister of Technology. They agreed, Mr. Shareff said, that representatives of their respective ministries would meet and discuss the areas and means by which technological collaboration between Israel and Britain might be most effectively developed.

The Israeli Minister said he had found a “friendly reception and response” from the British leaders, “both on the official and the private levels.” During his visit, he also went to Scotland where, Mr. Shareff said, he had made valuable contacts and found that the Scottish industrial estates held some useful examples for Israel. He said the Glasgow Chamber of Commerce would send a trade mission to Israel next year.

JOINT BRITISH-ISRAELI PROJECTS IN FOREIGN COUNTRIES DISCUSSED

Mr. Shareff discussed here possible British-Israeli projects in other countries and said that, in the event such cooperation developed, arrangements similar to the five million pound British credit could be made for British investment outside the limitation. Such projects, he said, have been envisaged not only for African, Asian and Latin American countries but also for East European lands. He cited as an example the Israeli-Rumanian trade agreement just signed in Bucharest.

The Minister said he hoped the British loan credit would be “only a beginning.” Israel, he said, was now embarking on a five-year plan of industrial and agricultural expansion with a total investment of 350 million pounds sterling ($980 million) of which 13 million pounds ($36.4 million) would be in foreign investments.

Regarding an agreement made here for technological cooperation, the Israeli Cabinet member said, desalination of seawater was one of the envisaged joint British-Israeli projects. He added that no military purchases were involved in any of the agreements made here during his visit.