The three American insurance firms which underwrote a $6, 000, 000 guarantee to assure completion of a new Dead Sea dam informed the Dead Sea Works today they would not accept the claim of the Israeli firm that the Kaiser Engineering Company had broken its contract on the project.
The American engineering firm halted work on the contract with the contention that specifications for a major portion of the contract were technically impossible. When the American firm threatened a $25, 000, 000 suit, the Dead Sea Works ordered Kaiser to evacuate its personnel from the projected area. It then sought to collect the insurance.
The three American firms claimed, in their refusal, that Kaiser had not broken the contract. The policy covered failure to complete the dam either for technical reasons or because the contractor failed to fulfill the contract. The Israeli firm reportedly was considering whether to sue the insurance firms, to obtain the $6,000,000.
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