Finance Minister Levi Eshkol stoutly defended in Israel’s Parliament today the transfer by the Israel Government to the American Investors Corporation of its shares in the Haifa Fertilizers and Chemicals Company.
He said it was a basic government policy to encourage private investors to take over such enterprises in which the Government had participated until the project reached the stage where public support was no longer required.
He made the statement in reply to a challenge from Hanan Rubin of the Mapam party who questioned the transaction on both its merits and the manner in which it was affected, The Mapam deputy said that the transfer was made without any money changing hands. He claimed that the 6,000,000 pounds paid by the American investors group was in Israel bonds.
The Finance Minister replied that the conversion of the bonds lessened the indebtedness of the company, that such conversion into Israel assets was provided in the terms of the bond, and that the Government would always welcome transformation of creditors into investors.
Mr. Eshkol praised the corporation and its directors and said they had long been prominent for their selfless devotion to Israel. He added he hoped the transaction would be the first of a series bringing in many more millions from overseas investors. He reported that the American corporation had 27 different investments in Israel.
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The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
