The presence of large sums of capital–mainly from foreign, sources will be a decisive factor in a development scheme for Israel which is being worked out in detail by the Finance Ministry, Eliezer Kaplan, the Finance Minister, revealed today at a press conference here.
The Minister reiterated previous pledges that his government will give all aid to an influx of capital, provided that it is engaged in constructive work. Arrangements will be made for the transfer of dividends earned without the application of a second tax on this income, he said. Specifically, Kaplan stated that machinery and tools purchased with such dividends might be imported into Israel duty-free. In addition, the government will provide free of charge sites for the erection of industrial establishments.
The Ministry is now working on a trade balance scheme for 1949 which it hopes will be operable despite the fact that from 40 to 50 percent of the nation’s food-stuffs must be imported. Pointing out that one of Israel’s chief problems is the fight against inflation, Kaplan announced that a special Ministry has been created to cope with the situation.
Queried about the payment of British claims against Israel, the Cabinet member disclosed that Israel will refuse to pay for the upkeep of the Cyprus camps in which Jewish refugees were interned against their will and which the British Government has charged against the account of the former Palestine Government. He also stated that Israel is drawing up counter-claims which will be presented to the British when fiscal negotiations begin. He gave no hint when such parleys were scheduled to start.
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The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
