An agreement for the release of the entire sterling balance owed Israel by Britain within two years was signed this week-end at the British Treasury by representatives of the British and Israel Governments.
The agreement allows Israel to draw 7,000,000 pounds in 1951 and 6,700,000 in 1952. If needed, Israel may draw in 1951 another two million pounds against the 1952 account.
Terming the agreement satisfactory to both sides, David Horowitz, director of Israel’s Ministry of Finance who headed the Israel delegation during the negotiations, revealed that the pact also provides for the transfer of a maximum of 2,250,000 pounds of charitable funds. All funds released will be used for purchases throughout the sterling area and in other “soft currency” areas.
Competent observers point out that in view of the fact that no monthly release quotas are stipulated in the agreement, Israel may draw the entire balance not later than January, 1952, if it chooses to do so.
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