The Government of Israel is determined to take significant measures to attract American private investments, it was learned here today while members of the Cabinet continued to meet this afternoon for the second successive day on the economic situation in the country.
It was revealed that a tax pact between Israel and the United States is now being negotiated to eliminate double taxation. At the same time, it was announced here today that the biggest plastic plant in all of the Middle East and Europe will be erected shortly near Tel Aviv by an American group of investors, in partnership with Israeli industrialists.
The American group will invest $1,000,000 in the new plant, while the Israelis will invest Israeli currency to the equivalent of $500,000. The new enterprise will be known as the “American-Israel Plastic Corporation.” The plant will produce patented plastic pipe, dishes and utensils and will start production within six months.
(The New York Times today reported that United States aid to Israel assumed tangible form with the arrival yesterday in Haifa of the freighter Laurentian Valley carrying the first cargo of food ordered under the terms of the United States grant-in-aid for 1951-52. Bruce McDaniel, director of Point Four assistance to Israel, and representatives of the Israel Government, were on hand to view the unloading of 5,500 tons of wheat and 4,500 tons of flour, which will case supply problems here. Three more ships are to come this month with more wheat and flour. Value of the four shiploads is set at $3,850,000.)
FIRST FRANCO-ISRAEL TRADE AGREEMENT PLANNED
Meanwhile, it was announced that negotiations for the first Franco-Israel trade agreement will get under way shortly. The pact will increase Israeli exports to France, which is currently Israel’s largest supplier on the European continent. The repayment of a 26,000,000 franc credit grant from France to Israel is being made according to schedule, it was learned.
The final stages in the conversion of the Palestine Potash Company into an Israeli firm with Israel Government participation, awaits formal approval of the partnership agreement by the Knesset Finance Committee, Moshe Novomeisky, manager of the company, revealed. Mr. Novomeisky, who has just returned from Britain, said that after the Israel Parliament approves the agreement a general meeting of British shareholders in the corporation will be called.
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