A flood of American investments in Israel’s industry was foreseen here today following the agreement reached yesterday between the United States and the Israel Government under which American private investors in the development of Israel will get their money back in dollars and will receive American protection against losses from possible expropriation.
Government circles here said that the new agreement indicates that the U.S. Government has confidence in Israel’s economic future and regards the Jewish State as a safe place for American investments. “It is now expected that the new agreement will greatly contribute to the promotion of investments by American individuals and companies in Israel, a government spokesman stated.
(In Washington, a spokesman for the Israel Embassy today hailed the new agreement as representing “a definite encouragement to American investors in initiating or joining investment undertaking in Israel.”)
The view of the American Government with regard to the new agreement was expressed here by Bruce MacDaniel, director of the Technical Cooperation Administration in Israel, under whom the guarantee agreement will be carried out, In a statement issued here last night, Mr. MacDaniel declared:
“The American Government is calling on private productive forces to fill a vital and natural role in our foreign policy. Our main task is to help other nations increase their productive power and productivity as speedily and economically as possible. Dollar appropriations (by the American Congress) are not the permanent answer to our mutual problems. Private capital, with its wealth of technical and managerial skills and intimate contact, is the natural agent for handling the job. When private enterprise can be induced to play a full part in Israel economic effort the need for direct governmental assistance from the United States will be minimized.”
The agreement guarantees American investors conversion of up to ten percent of their investment annually in the form of profits, dividends or repatriation of capital. The pact is similar to those concluded previously between the United States and Austria, Denmark, Greece, France, Italy and Norway. For a small “premium” investments will be guaranteed in dollars out of Mutual Security Act funds.
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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.
