U.S. to Start Talks with Israel on Resumption of Suspended Aid

The State Department today announced that it will soon resume negotiations with Israel on the suspended economic aid programs to the Jewish State which were frozen last Fall following the outbreak of the Sinai hostilities

Lincoln White, State Department spokesman, who made the announcement, added that the American-Israel talks would concentrate primarily on suspended aid programs, but that he did not rule out discussions of new economic projects. The official statement reads as follows:

“The Israeli Ambassador has expressed the interest of his government in resumption of more normal relations with the U. S. in the economic field. These have been disturbed by recent events. Israeli forces have now been withdrawn behind the armistice lines in accordance with United Nations resolutions. In view of this action which the U.S. has strongly supported, we plan to resume consultations with competent Israeli authorities regarding matters of mutual economic interest.”

Mr. White said the talks will presumably be held in Washington but that he did not want to rule out the possibility of discussion also being held in Israel. He suggested that President Eisenhower’s special Middle East Ambassador James P. Richards might also play a part in the discussions. Mr. Richards is currently in the Middle East area attempting to sell President Eisenhower’s Doctrine which sets aside dollars for economic aid program to Middle Eastern countries.

Mr. White made known that Israel Ambassador Abba Eban asked that talks on U.S. economic aid programs to Israel be started when he called on Under Secretary of State Christian Herter last night. He said the matter had also been raised by Israeli representatives last week. Asked when the talks will start, Mr. White said “fairly soon.” He said that after talks resume he thought both the aid programs and the staffs involved in the programs would return to Israel.

With regard to lifting the ban on American travel to Israel. Mr. White said that this was a separate matter. He released details on American aid to Israel which show that for the fiscal year 1956, Israel was receiving $20,000,000 in development assistance.

Of this amount, $5,000,000 was on a grant basis and consisted of imports of salable commodities, including fuels, machinery, vehicles and spare parts. The other $15,000,-000 of which $10,000,000 was on a loan basis consisted of surplus agricultural commodities, including wheat, course grains, cotton, fats, and oil. No figures were available for the technical assistance programs under question.