Soviet inaction in use of credits placed at the Soviet Union’s disposal by Israel was considered here today as pointing to a new deterioration in Soviet-Israel relations.
Under terms of a property settlement reached last year, Israel paid the Soviet Union $4, 500, 000 for full property rights for a site in central Jerusalem known as the “Russian Compound.” The property was acquired by the then Czarist-controlled Orthodox Church. Under the pact, Israel paid $1,500, 000 in cash with the rest offered in credits for Israeli products.
The Soviets have never used the credit, apparently fearing that if it did, the move could be interpreted as an expansion of Soviet-Israel trade relations.
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