Israel is ready to pay to the United States Export-Import Bank the last installment on a $135,000,000 loan extended to the Jewish State in 1949, when the year-old state was in desperate need of financial resources, it was learned here today.
At the same time, George Woods, president of the International Bank for Reconstruction and Development, the so-called World Bank, formally signed a document today extending a loan for $20,000,000 to Israel Industrial Development Bank.
The big loan given Israel 16 years ago has been partially repaid in varying sums, all large, at regular intervals since 1949. As of today, there is outstanding $7,000,000. On September 30, it was disclosed today, Israel’s Minister of Finance, Pinchas Sapir, will come to Washington to hand over the final payment. At the time the Export-Import Bank’s loan was being negotiated, authorities of the fiscal institution had expressed confidence in Israel’s economic future.
The agreement for the new $20,000,000 long-term World Bank loan was signed at a ceremony attended by Haim Zadok, Israel’s Minister of Commerce and Industry, and Nahum Shamir, Israel’s Economic Minister in the United States. Mr. Woods noted that the World Bank is “gratified” by Israel’s progress and expressed his hope for continued Israeli economic development. He also said the bank had noted with satisfaction the assistance Israel was rendering to various underdeveloped nations.
On Israel’s behalf, the agreement was signed by Mr. Shamir and two directors of the Israel-Industrial Development Bank, Yehuda Gil and Sam Rothberg.
Mr. Zadok, told Mr. Woods that the World Bank contribution was of great significance in Israel’s highway development program, the exploitation of Dead Sea resources, and the building of Ashdod harbor facilities. He expressed hope for closer cooperation in the future between Israel and the World Bank. The bank has already loaned Israel a total of $94,500,000. The new loan is the fourth.
Later, expansion of Israel-American trade was discussed when Mr. Zadok met with Secretary of Commerce John T. Connor. He also took up the issue of broadening American investments in Israel, as well as American participation in next year’s Tel Aviv Trade Fair. He was accompanied on the visit to Secretary Connor by Ambassador Avraham Harman and Mr. Shamir.
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