Israel May Get Italian Loan and Investments, Sharett Reports

Possibilities of an Italian loan to Israel and of Italian investment in Israel were held out here today by Foreign Minister Moshe Sharett on his return from official visits to Britain and Italy.

Mr. Sharett said that the trade and communications talks he initiated in Rome will continue. He denied that in his talks with Italian Premier Alcide de Gasperi there had been any attempts at mediation by Italy between Israel and the Arab states and added that he had pointed out to Premier de Gasperi that relations between Italy and Israel on the one hand and Italy and the Arab states on the other were not contradictory.

The Foreign Minister disclosed that in his London talks with Prime Minister Winston Churchill, Foreign Secretary Anthony Eden and Chancellor of the Exchequer R.A. Butler, he had discussed British military aid to Israel as well as economic and fuel problems. He pointed out that Israel had purchased quantities of military equipment in Britain and there was a possibility of future purchases.

In his audience with the Pope, Mr. Sharett said, the internationalization of Jerusalem was not mentioned. The main topics discussed, he said, were the Christian communities in Israel, the Holy Places and religious freedom in Israel.

Mr. Sharett was forced to spend the night in Athens, the plane on which he was flying from Rome to Lydda having had to return to Athens Airport owing to mechanical difficulties.

Prior to boarding the plane at Rome last night, Mr. Sharett told reporters that Israel’s position in the Mediterranean and its democratic structure as well as its ties throughout the world were a good foundation for the development of friendly relations with a democratic Italy. Such relations, far from being aimed against the interests of any other state or group of states, could only help promote peace and harmony in the Middle East and the entire Mediterranean area, Mr. Sharett added.