Cancellation by the French Renault automotive concern of agreements for the sale and assembly of Renault cars in Israel is being discussed “at the highest levels.” Foreign Minister Golda Meir reportedly informed the Israel Cabinet at its meeting yesterday.
The French firm cancelled the arrangement in compliance with the Arab economic boycott of Israel. Mrs. Meir’s report, it was learned today, did not raise any question of counter-action against Renault. That the Renault affair will not affect Franco-Israeli relations was indicated by the fact that the Cabinet also approved a decision by the Zim-Israel Navigation Company to place orders for the construction of a $3, 500, 000 passenger liner with a shipyard in Nantes, France.
The French Government, it was said here today, had approved proposals for establishment of an important French-Israel joint enterprise, the nature of which has not yet been disclosed.
(The generally well-informed London Financial Times declared today that in abrogating its contract for sale and assembly of its vehicles in Israel, the Renault automotive concern invoked an escape clause permitting such action if the French Government should demand it “for political reasons.”)
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