The long-pending joint American-Israeli nuclear desalination program has fallen victim, temporarily at least, to America’s balance of payments difficulties and the drive to cut expenditures not required by the Viet Nam war, high Government officials disclosed today. An authority who approved the feasibility study said that the Administration favored implementation of the plan to build a dual-purpose nuclear desalting plant in Israel but has decided to defer any further financial commitment because of the war in Viet Nam and economic considerations.
Hopes had been entertained by Israelis for an American loan that would permit work to start on the much-discussed program. The idea of a joint American-Israel nuclear desalination venture was first proposed by President Johnson in the Spring of 1964. The shelving of the undertaking is still not officially confirmed. Officials said that it would technically remain “under consideration.” But actually. the President’s new austerity program, announced yesterday, would rule out the loan of dollars to Israel or any large outlay to implement the construction of a nuclear desalination plant.
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