The State of Israel made a final payment here today of $31, 320, 685 to complete the redemption of the first Israel Bond issue ever floated in the United States to help finance Israel’s economic development.
Pinhas Sapir, Israel’s Minister of Finance, told more than 350 Jewish leaders who gathered at a luncheon at the Waldorf-Astoria Hotel at noon today to celebrate the event, that "the completion of the repayment of the first Israel bonds represents an important milestone in our drive toward economic independence.
The $31, 320, 685 check which Mr. Sapir turned over at the luncheon was the largest single amount ever paid out by the State of Israel to meet any of its financial obligations. It was made out to the Chase Manhattan Bank, fiscal agent for Israel bonds, to be distributed to holders of Coupon Bonds maturing today. These are the last outstanding bonds of the Independence issue, which produced a total of $145, 532, 800 during the three-year period beginning May 1, 1951, when the first Israel bond campaign was launched in the United States.
In addition to the Israel Finance Minister, the luncheon was addressed by Avraham Harman, Israel’s Ambassador to the United States; Abraham Feinberg, president of the Israel Bond Organization. Dr. Joseph J. Schwartz, vice-president, and Samuel Rothberg, national campaign chairman.
WILL PAY ANOTHER $33, 000, 000 FOR REDEMPTION OF OTHER BONDS
The Israeli leader pointed out that, in addition to the $31,320,685 payment made today, Israel would pay out another $33, 000, 000 for the redemption of other Israel bonds falling due this year. "All together," Mr. Sapir said, "Israel will pay back to the United States Government, banks, companies, institutions and individuals in this country nearly a quarter of a billion dollars during 1966.
"This total of payments demonstrates the magnitude of cooperation and help we needed and received from this country and it is a demonstration of our own economic growth and maturity in being able to meet all of our financial commitments squarely." Recalling that Israel was in dire economic straits in 1951 when the Israel bond program was launched, the Israel Finance Minister said that today "the people of Israel can hold their heads high because you have given them the tools to build a life of dignity and self-reliance."
Mr. Sapir observed that the final payment on the first Israel bond issue marked "the end of the first historic chapter in the economic awakening of Israel." He added: "We have redeemed the promise to repay the bonds. In the process you have helped us redeem the greater promise of revival and new life for the Jewish people." He emphasized that the proceeds from the worldwide sale of Israel bonds had stimulated the development of every important aspect of Israel’s economy during the last fifteen years.
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