Israel Weighs New Compulsory Loan to Meet Costs of Immigrant Settlement
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Israel Weighs New Compulsory Loan to Meet Costs of Immigrant Settlement

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Israeli authorities were studying today the possibility of levying a compulsory loan of 30, 000, 000 pounds ($16, 667, 000) to help finance the costs of receiving and settling the mass immigration from Eastern Europe expected here this year The compulsory loan would be in addition to a voluntary loan issue of 20 million pounds ($11,112,000) which has already been launched here.

Absorption of the newcomers in 1959 will require a total expenditure here of about 200,000,000 pounds ($111,112,000), it is estimated. Of this total, some 130, 000, 000 pounds ($61,112,000) is expected from abroad, leaving a balance of 70 million pounds ($38, 890, 000) which will have to come from Israel itself.

The Israeli participation, would come through the voluntary loan of twenty million, an increase of 20 million in the loan being raised for immigrant housing, making it 70 million instead of 50 million, and the proposed new compulsory loan of 30 million.

A special tax to raise 30 million has been discussed in place of the proposed compulsory loan, it is understood, but the majority of the experts were reported to favor a compulsory loan, which would ultimately be repaid to the subscribers.

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