Israel-German economic enterprises in Israel are envisaged under talks now being conducted between representatives of the governments of Israel and West Germany, it was revealed here today by F. E. Shinar, head of the Israeli Reparations Mission to the General Federal Republic. Herman Abs, director of the Deutsche Bank in Frankfurt, is now in Israel studying economic conditions of the country.
Mr. Shinar reported that attempts are being made to induce German firms to make investments in Israel. He said that the Bonn Government has already assured that credit would be given to Israel on certain projects, and that negotiations on one of these projects have already been completed. He disclosed that the projects negotiated by Israel with West Germany include the expansion of power stations, erection of a Diesel engine plant, building of a phosphoric acid plant, and a lubricating oil refinery.
(In London, it was reported today by Reuters that negotiations have ended on the first large business deal between Israel and West Germany outside their 1952 reparations agreement. Long-term credits equivalent to $6, 500, 000 have been granted by an unidentified West German concern to expand Israel’s power capacity.)
Mr. Shinar also reported that West Germany has paid to Israel in goods and services a total of $451. 785, 000 under the German-Israel Reparations Agreement in the Iast seven years, comprising 55 percent of the grand total of $821, 428, 000 which Israel will receive under that pact. He said that the payments under the agreement would be completed by 1965 or 1966.
Altogether, in the 70 years since the agreement went into effect, in 1952, Germany has sent to Israel 1, 100, 000, 000 tons of goods, excluding oil. Germany’s exports to Israel, said Mr. Shinar, amounts to 12 percent of Israel’s total imports.
Israel has ordered 47 ships under the agreement, he reported. Of these vessels, 26 have already been delivered, while the remaining 21 ships are expected to be delivered by 1962. The Israel Reparations Mission, he said, has already started planning for trade relations to follow the expiration of reparations.
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