An offer made by the Iraqi Government to resume pumping oil to Haifa through the intermediaty of the Shell Company and the Anglo-Iranian oil Company has been rejected by Israel because if strings which were attached to the Iraqi proposal, it was learned here today. These conditions, the Israel Government told the oil companies, made the Iraqi offer unacceptable.
Iraq’s four conditions were these: 1, The Haifa refinery would by “internationalized.” 2. oil pumped to Haifa should be exempt from all Israel taxes, customs or excise. 2. Iraq wants reciprocal free entry through Haifa of all goods destined for Arab countries. These would also be exempt from all customs and excise, as is usual with free ports. 4. Iraq wanted the oil allocation for Israel domestic use to be strictly limited by agreement between the Tel Aviv government and the oil companies.
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