American military personnel will be able to purchase Israeli products in United States post exchanges and ships stores throughout the world, under new agreements signed here today by Israel Ambassador Avraham Harman with Phillips Talbot, Assistant Secretary of State for Near Eastern Affairs.
A ceiling agreement with the State Department authorized Israeli dealings with U.S. armed services for export of goods and services. Payment will be partly in Israeli pounds from counterpart funds owned by the U.S. Government, and partly in dollars. Each case will be decided on its merit. Generally, dollars will be paid only for components and raw materials.
A more specific agreement augmented one already in force with the U.S. Navy which is buying $250,000 worth of Israeli products. This was broadened to include the U.S. Army and Air Force, making available Israeli textiles, fashionable items of apparel, handicrafts, leather products, and other goods.
Authorization is now granted to sell beyond the original quarter-million dollar deal with the Navy ships stores. Payment will be 65 percent in dollars, and 35 percent in Israeli pounds from counterpart sources. The new agreements allow Israel to compete with European nations in offering products to the popular “PX” and ships store establishments patronized by many American servicemen and their families.
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