The Knesset Finance Committee last night announced the general conditions under which it would reaffirm the Mandatory regime’s concession to the Palestine Potash Company for the exploitation of the Dead Sea’s mineral resources. In effect, the terms would place control of the company in the hands of Israel individuals and institutions, including the goverment.
The committee’s announcement said that the company must immediately launch a program to transfer its main offices to this country and that this work must be completed by the end of 1950. The corporation must also make available sufficient voting shares to Israel individuals and institutions to give them majority control.
The corporation must also agree to negotiate with the Israel Government for nationalization of the plant, on one year’s notice. Adequate compensation would be granted the company by the government in the event the plant were nationalized.
The company must raise by the end of this year at least 2,000,000 pounds ($5,600,000) in foreign currency to improve its plant on the southern shores of the Dead Sea, including providing adequate housing for its employees. It must also pay half of the paving costs of the Beersheba-Kurnov-Sodom road over which its products must be moved to distribution centers.
The Israel Government will contribute $2,500,000 toward the development of the corporation’s facilities, the announcement said. Since the concession was granted on the basis of Mandatory laws and both the Cabinet and the Parliamentary Committee have approved it, the matter need not be taken up by the entire Knesset.
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