Israel Starts Drive in U.S. for $300,000,000 in Private Investments

The Israel Investment Authority, a recently formed agency of the Government of Israel, today launched a drive aimed at attracting $300,000,000 in American private investment in Israeli enterprises. The drive was announced at a press conference here by Shimon Horn, U, S. director of the Authority.

The Authority, which opened offices today in six cities in the United States in addition to the one in New York, will endeavor to boost the annual investment rate from private individuals in the U.S., from the current figure of $25,000,000 per year to more than $50,000,000 within the next five years.

Arych Manor, Israel’s Economic Minister in Washington, said at the press conference that Israel will try to reach the $300,000,000 investment goal before 1965, by which time the proceeds from the German reparations agreement will have petered out. He said that Israel is aware of the fact that they cannot accomplish what has to be done in the next five years “without the aid of private investment, “

Incentives being offered to attract American investment include tax exemptions to new enterprises in accordance with the law for encouragement of investment passed by the Knesset last year and the fact that Israel can serve as a bridge for American firms who wish to export their products to the new nations of Asia and Africa. Such firms can manufacture their products for export in Israel and withdraw their profits and capital in dollars, Mr. Horn explained.

The Israel Government is also ready, Mr, Horn declared, to grant loans to private American investors for up to 65 percent of the initial investment. He announced that the Israel Government had already signed agreements with three American chemical firms who will set up plants in Israel within the next few months. He did not disclose the names of the firms.

Regional offices of the Israel Investment Authority which were opened today are located in New York, Philadelphia, Boston, Chicago, Cleveland, Los Angeles, and Miami. An eighth office will be opened in Dallas, Texas, within the next few weeks, Mr. Horn said.

If the drive for private American investment proves successful, Mr Horn declared, the Authority will launch similar drives in Argentina, Brazil, Mexico, the United Kingdom, France and Switzerland, Joseph Mazer, chairman of the board of the American Israeli Paper Mills, one of the first U.S. firms to begin operations in Israel, reported at the press conference that the paper mills had more than doubled their output capacity from 17,000 tons in 1954 to 40,000 tons last year.