The continuing drop in Israel’s purchasing power in the sterling bloc countries and the expected influx of German goods as a result of the West German-Israel reparations pact must further reduce British-Israel trade unless Britain takes immediate action to reverse this trend, the Anglo-Israel Chamber of Commerce pointed out in a memorandum to the British and Israel Governments which was made public here today.
The memorandum reveals that British firms have already lost some business in the Israeli market because of a shortage of sterling in Israel. it warns that further loses are “certain” if Israel finds itself unable to sell many of its traditional exports in Britain or other sterling countries. If this development continues the memorandum says, Israel will be forced to find other outlets for reciprocal trade.
The only solution for safeguading present British-Israeli trade relations is a reciprocal trade agreement, the memorandum recommends. With this as insurance for a longterm relationship, the memorandum advises that Britain increase its purchases from the Jewish State in order to give Israel enough sterling currency at this time to continue importing British goods.
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