Sharett Leaves U.S. with Plan for U.J.A. -bond Drive Coordination

Israel’s Foreign Minister Moshe Sharett, prior to his departure today from the United States, issued a statement that he had formed certain conclusions with regard to the question of coordinating the activities of the Israel Bond Issue and the United Jewish Appeal and will submit them to the Israel Government for a final decision.

Mr. Sharett emphasized that he was “very much impressed and greatly heartened by the deep attachment to Israel, eagerness to hear its message and enthusiasm for its cause” manifested at the scores of meetings which he addressed in the United States and Canada, ranging from gatherings of a few hundred people to the huge mass rally in Boston which nearly 20,000 people attended.

“In the United States I appeared both on behalf of the Israel Bond Issue and of the U.J.A.,” Mr. Sharett said. “Regardless of the auspices, I invariably devoted my remarks to the explanation of the need for both. The value of gift funds as provided by the U.J.A. for the satisfaction of fundamental needs of reclaiming and developing the land of Israel and rehabilitating its immigrant population stands as high as ever. At the same time there is an imperative and growing necessity for investment funds to be placed at the free disposal of the Government of Israel and to be expended on the creation of reproductive assets, through the instrumentality of the Bond Issue.

“The investment of purely private capital is a third channel through which funds should flow for bringing Israel’s economic possibilities to full fruition, but this can only serve as a highly valuable addition to, yet by no means as a substitute for either the U.J.A. or the Bond Issue.

SAYS BOND ISSUE IS NO DETRIMENT TO UNITED JEWISH APPEAL

“As for these two public fund-raising efforts, they should be regarded as mutually supplementary and on no account as competitive. The fears expressed at the time the Bond Issue was originally launched that if it prospered at all it could only do so at the expense of the U.J.A. have not been borne out by experience. On the contrary, the Bond Issue has proved itself capable, without the least detriment to the U.J.A., of opening up new sources of capital for the development of Israel’s economy and increasing its dollar resources.

“Those engaged in sponsoring both these great efforts should realize that neither can be conducted in disregard of the other but that each is perfectly justified and absolutely necessary in terms both of the vital interests of Israel and the great potentialities of American Jewry. Israel expects all of its friends and supporters to work in harmony and with maximum energy for both. It must certainly insist that nothing should be done to hamper or discourage either.

“If this understanding is shared by all concerned then the question of co-ordinating or harmonizing the activities of the Israel Bond Issue on the one hand, and of the U.J.A. and welfare funds upon the other, becomes a purely organizational one. In the course of my stay here I have had opportunities of consulting those active in the direction of the Bond Issue, and leaders of the U.J.A., the heads of the Council of Jewish Federation of Welfare Funds and last, but not least, my closer colleagues of the executive of the Jewish Agency.

“I tried to clarify both the major problem of maintaining and strengthening the work of the two institutions and the incidental issue of the relationship between them.

I have formed certain conclusions which I will lose no time upon my return in presenting to my Government for a final decision.

“I have also taken advantage of this visit to America to discuss with representatives of the United States Administration questions relating to Israel’s economic position and efforts. I particularly drew attention to the difficulty arising from the accumulated short-term indebtedness with which Israel is now burdened and explored ways and means of alleviating our position in this regard. I was gratified to have met with considerable understanding but it is too early yet to say whether and what practical results will be forthcoming as the matter is still under study and investigation.”