Israel “regrets” Germany’s Move on 1954 Payment of Reparations

In the strongest statement yet made by him, Dr. F.E. Shinnar, head of the Israel purchasing mission in Germany, today voiced regret that West German Government had used an “escape clause” in its reparations agreement with Israel to reduce the amount of reparations it will provide the Jewish State in the year beginning April 1 to the equivalent of $59,500,000.

Dr. Shinnar noted that $73,800,000 had been set in the pact as the “normal” annual total of reparations goods and services. He also expressed hope that Germany would increase the amount it will make available to Israel in future years.

He stated that German industry had shown a great interest in producing reparations goods and added that delivery schedules had been worked out in a “business-like atmosphere.” He noted for the record that shipments to Israel had not interfered with German-Arab trade.

The shipment program which runs until March 31, 1955, does not very much from last year’s purchasing program, with Israel spending as much as becomes available on much the same type of goods. A breakdown of the goods to b ordered shows that approximately $7,000,000 will be spent on agricultural products, about $3,600,000 on services, $31,000,000 on industrial goods and about $18,000,000 on British oil products for which Germany will pay.

In a move intended to benefit Israel’s long-range development program, the Israel-German mixed commission decided to permit Israel to place orders this year for delivery in 1955 and 1956, to be charged against later reparations payments. In return, Israel agreed to place a certain proportion of its orders within specified industrial groups.