A technical delegation of the World Bank is now being formed and will proceed to Jerusalem to study Israel’s request for a loan from the Bank, it was learned here today. The delegation will go to Israel within the coming months.
Meanwhile, World Bank sources today revealed that Egyptian Finance Minister Kaissouna left Washington without a decision on the loan sought by the United Arab Republic to improve the Suez Canal. The bank was described as aware of the Canal transit issue aired this week at the United Nations. Objections were made to the bank by important U.S. Congressional elements citing the Suez blockade against Israel.
It now appears that the loan has been delayed but that it would ultimately be approved. A possibility exists that the loan will be issued not directly to the UAR Government but to the Suez Canal Authority. This would place greater emphasis on its economic character and sidestep the political issue.
It appeared today that President Nasser’s envisaged massive Canal scheme will not be approved although a formula is being sought for a much smaller “piecemeal” approach. The bank is continuing discussions to establish a basis for the loan. Only then can the application actually be submitted for a decision.
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