Eugene Black, president of the World Bank, which recently granted a huge loan to the United Arab Republic to expand the Suez Canal, said here today he would be ready to act as mediator in the crisis which has developed over the picketing of an Egyptian ship in New York harbor.
Mr. Black, who arrived yesterday for a four-day visit during which he will negotiate with Israel officials on an application for a loan from the World Bank, indicated that, if asked, he would talk with UAR President Nasser on the blockade of the Suez Canal to Israel shipping and the counter-blockade against Egypt from American maritime workers protesting UAR blacklisting of American ships stopping at Israel ports. He emphasized that he was prepared to mediate “economic problems arising within political spheres.”
At the same time, he declined to comment on a question from reporters as to whether a continuation of the Egyptian blockade against Israel use of the Suez a Canal would prevent the UAR from obtaining additional World Bank loans.
Informed sources in Jerusalem indicated that Israel hopes to receive “several score millions of dollars” from the World Bank to expand facilities and production of the Dead Sea potash works. Total expenditures projected for the two projects is about $120,000,000 but Israel does not expect that much since the World Bank provides only a portion of development project budgets with the balance contributed by the Government receiving the grant.
World Bank experts last month finished an on-the-spot preliminary study of the two projects and Israel officials believe their findings were favorable. The exact amount of the projected loan was expected to be discussed by Mr. Black and his host, David Horowitz, Governor of the State Bank, and Finance Minister Levi Eshkol.
The advisory board of the Israel Development Ministry, headed by British scientist Sir Ben Lockspeiser, meanwhile published plans for expansion of the Dead Sea production by 400,000 tons annually. The plans also call for an increase in Dead Sea magnesium production by 60,000 tons and bromine output by 5,000 tons annually. The plan noted that if the project was completed, it would reduce potash production costs by 50 percent and place the Dead Sea works in an excellent competitive position.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
