Germany Cuts Red Tape in Reparations Payments to Israel

The implementation of the West German-Israel reparations pact is being carried out in an “absolutely satisfactory” manner, Dr. George Josephthal, head of the Israel corporation charged with handling the goods assigned to the Jewish State in payment of reparations, declared here today.

Dr. Josephthal, who has just returned from a European trip including a visit to Germany, said that German officials were cutting down on red tape all along the line and have cooperated in several other ways. Among these, he pointed out, has been a tendency to approve the purchase of goods needed by Israel which were not included on the approved list of reparations items.

Also, he said, the Germans have approved the purchase by Israel of goods from other countries in which Germany has blocked credits. This has permitted Israel to obtain such goods as wood, cotton, rubber and hides–all within the framework of the reparations agreement. He reported that an agreement of the same nature is expected to permit Israel to obtain wheat supplies with reparations funds–probably from Turkey.

Dr. Josephthal said that between two and three ships bearing reparations goods would soon be arriving monthly at Israeli ports. The first four cargo vessels carrying German goods will be Israeli-flag ships and the fifth will be a Swedish vessel. He stated that an understanding has been reached for Germany to supply Israel with heavy equipment, including shipping and electrical installations.

Commenting on the course of the negotiations between the Austrian Government and the world Jewish organizations for the recovery of heirless and other unclaimed Jewish property, Dr. Josephthal said the talks might fail unless the Austrian Government agrees to repay the value of stock and bank deposits seized by the Nazis from Jews, as well as turning over heirless property which is now in the hands of the Austrian Government. The talks, currently in recess, are scheduled to be resumed early next month.