U.S. Offers Israel $32, 000, 000 in Food Surplus; $20, 000, 000 in Loans

A State Department spokesman said today that the United States has offered Israel about $52, 000, 000 in new assistance in various categories. “In response to an Israeli request for economic assistance in fiscal year 1966, we have offered aid consisting of development loans, Export-Import Bank credits and PL 480 programs, ” the official said. The PL 480 provides surplus commodities.

“We have not as yet received a response to our offer, but we assume that detailed negotiations will begin shortly,” the spokesman stated. “The total value of the aid offered will be about $52, 000, 000, the largest component of which consists of food under PL 480 and will be payable partly in dollars and partly in Israeli currency.”

(From Jerusalem it was reported to the Jewish Telegraphic Agency today that the U.S. offered to deliver to Israel during the fiscal year starting next July I about $32,000, 000 worth of food surplus and also suggested a $10, 000, 000 development loan. During the same period Israel is to get also a $10, 000, 000 loan from the Export-Import Bank. The offer provides that Israel is to pay in dollars for 25 percent of the cost of the surplus food. This is the first time that Israel will be paying partly in dollars for U.S. surplus commodities.)

The surplus food offered now to Israel is equal to that provided in previous years during which Israel paid for it in Israeli currency. In addition to the purchase of the $32, 000, 000 in surplus food, Israel is buying from private firms in the United States $45, 000, 000 in food and paying for this in dollars. The United States gave Egypt $56, 000, 000 in food surplus last January on terms of payment entirely in local Egyptian currency.