Chairman Mike Mansfield of a Senate Foreign Relations subcommittee today raised questions about a supplemental appropriation bill that granted Israel $3, 525, 000 in Israeli pounds for educational, scientific and cultural activities in Israel. At a subcommittee hearing, the Montana Democrat asked an official of the U. S. Information Agency for a full explanation and a statement of the agency future plans in Israel.
The appropriation, voted during the last session, provided Israeli organizations and institutions with funds that had accrued to U. S. credit through operation of the informational media guaranty program in Israel. The money was dispensed in accordance with recommendations of Bernard Katzen, special consultant to Secretary of State Dulles Sen. Mansfield made clear that his subcommittee will require a detailed account of any present planning to provide further funds to Israel through an operation like the program submitted by Mr. Katzen.
The informational media guaranty program makes it possible for a country like Israel, having a shortage of foreign exchange to import books, periodicals and other informational media from the United States through regular commercial channels. Under this plan foreign importers make payment to the American exporter in local currency, and the exporter exchanges the Israeli pounds thus obtained for dollars upon application to the United States Information Agency.
In January, 1956, Secretary Dulles appointed Mr. Katzen as a special consultant to visit Israel and prepare recommendations for the use of seven million Israeli pounds accumulated by the United States. Mr. Katzen subsequently prepared recommendations listing beneficiaries. The recommended legislation was eventually voted as an item in the State Department supplemental appropriation bill.
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