Hadassah President to Testify Before Congress on $1,000,000 Request

U.S. Government sources said today that the Hadassah organization was offered a loan to finance its operations in Israel but the offer was rejected and a grant requested that could not be approved because the State Department no longer regards Israel as an underdeveloped nation.

This was made known by officials when it was revealed by the House Committee on Foreign Affairs that Mrs. Charlotte Jacobson, Hadassah president, will testify before Congress next week on the rejection by the State Department of Hadassah’s application for $1,000,000 in Israel pounds from available counterpart funds. Mrs. Jacobson will ask Congress to amend the Foreign Assistance Bill to include the Hadassah item omitted by the Executive Department from the Administration’s request.

Hadassah had asked to be included under Section 214 of the bill, a provision that made available massive aid to comparable institutions in Arab states. Although over $33,000,000 had been granted to the American University of Beirut since 1959, the State Department decided to reject the Hadassah request for $1,000,000 in Israeli pounds. State Department sources said today that the Israeli economy has now progressed to the point where the Israeli pound is regarded as virtually “hard currency.”

HADASSAH WAS OFFERED LOAN INSTEAD OF GRANT, WASHINGTON SAYS

A spokesman for the U.S. Agency for International Development (A.I.D.) said that AID administrator David Bell wrote Mrs. Jacobson some time ago proposing a loan instead of a grant to meet the Hadassah needs in Israel. AID said Mr. Bell felt that Hadassah had a remarkable financial record and had every reason to be loaned the sum requested from available Israel pounds.

The AID determination was based on what was said to be a Congressional desire that in such cases loans be given instead of outright grants. Also, Israel is no longer regarded as in dire need and is no longer classified as an underdeveloped country entitled to grants. It was pointed out that Israel is regarded as a viable nation and greater and more pressing needs exist elsewhere.

Officials meanwhile made known today that Hadassah was last year given 1,000,000 Israel pounds under Section 203 of Public Law 480 as a registered voluntary agency. This sum helped in distribution of food and in establishing air-conditioned facilities for dining at Hadassah Hospital. It was noted that Hadassah was the “first recipient” of assistance under Section 203.

Authorities said they felt Hadassah had a right to appeal to Congress but thought the organization had received all due consideration from the Executive Department. Rep. Leonard Farbstein, a member of the House Foreign Affairs Committee, said he thought that Hadassah should be included for a grant, as requested, under Section 214. He said that a strong fight would be made “to assist the eminently worthy efforts of Hadassah” by adoption of a suitable amendment.