The Israel Cabinet today appointed a five-man Ministerial committee to negotiate the future of the Palestine Potash company which operates under a concession granted during the British Mandate over Palestine. Plans for the Israel Government’s becoming a partner in the company are under active consideration, it was indicated by Treasury officials here.
The five-man committee appointed by the Cabinet included Finance Minister Eliezer Kaplan; Dove Joseph, Minister of Commerce and Industry; Levi Eshkol, Minister of Agriculture and Development; David Zvi Pinkas, Minister of Communications; and, Perez Naphtali, Minister without portfolio.
It was disclosed today that certain official quarters favor complete nationalization of the company, since it has failed to raise the requisite funds needed for operation in partnership with the government. However, other factors–including the expectation that development of Dead Sea Resources will be accomplished more economically by a private company in partnership with the government than by a wholly nationalized industry–has militated against nationalization.
Moshe Novomeysky, managing director of the company, indicated that he is not opposed in principle to the transfer of control of the company to the Israeli Government. It is understood that shareholders who do not approve of the partnership arrangement with the Israel Government will be compensated by the government if they prefer to turn over their holdings in the company to the government.
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