A Big Job Begun

As the Editor
Views the News ...

Import, Export Controls;

Neo-Nazi Threats -

Foreign Currency Needs

Admitting that there had been a num-
ber of disturbing incidents involving neo-
Nazism that "would need action," American
High Commissioner John J. McCloy, in an
annual report on American occupation ad-
ministration in Germany, voiced the convic-
tion that Nazism will never again rise in
Germany and said he "felt most hopeful" of
a, liberal spirit among the German people.

By P. BERNARD NORTMAN

Final article in the series on Israel's economy based
on the brochure "Investing in Israel" published by the
Economic Department of the Jewish Agency for Palestine.

McCloy stated that he always felt that
"the Jewish question was a touchstone of
Germany's capacity,to develop into a liber-
al state ;" that there have been incidents
"which have been most debasing;" but that
the most important thing to him has been
the reaction to the incidents in the press and
the statements of President Theodor Heuse
and Chancellor Karl Adenauer.

These statements are important in view

of similar denials of the rise of Nazism by
Lt. Gen. Geoffrey Keyes, American com-
mander in Austria and U. S. representative
on the Allied Council in Vienna. Refuting
accusations by the Soviet Union that neo-
Nazism is rife in Austria, Gen. Keyes re-
ported that he has examined the charges
and found them "totally unsubstantiated by
fact. This, together with the false and ridic-
ulous accusations that war criminals and
Nazis have been protected in the American
zone in Austria, leads me to conclude that
this entire campaign has been manufactured
for other purposes."

Nevertheless, incidents of the type that
were branded as "most debasing" by Mr.
McCloy have occurred so often that the
declarations by American spokesmen in
European zones of occupation call for fur-
ther explanation. Several days after Mr.
MeCloy had made his above quoted state-
ment, his - staff annqunced a "hands-off"
policy in the case of Wolfgang Hedler, right-
wing member of the German parliament
who had been suspended from office for his
anti-Semitic utterances. Hedler's fulmina-
tions included such statements as: "on
whether the gassing of Jews was right,
everyone should have his own opinion; may-
be there were other methods of cleansing
Germany of the Jews."

While it is true that American authori-
ties are waiting for German courts to take
action in Hedler's case and are waiting for
reactions to indicate to what degree the
anti-Semite reflects the opinions of other
Germans, the fact that they are dealing
with war criminals who were responsible
for the death of millions must be kept on
the open record. The World Jewish Con-
gress, in a demand that Germany should
repudiate pernicious Nazi doctrines in par-
liament and by pursuing firm action against
its criminals, pointed out:

"German liability cannot be discharged
by speeches or statements to the- press
. . . To offer anything less than complete
repentance and the binding obligation to
make reparation, would do justice neither
to the memories of the martyrs nor to
the self-respect of those who have sur-
vived."

A - new danger is at hand in Germany
and the responsibility of the democratic
forces is growing. Eternal vigilance against
the re-emergence of the German terror re-
mains the duty of all lovers of liberty.

THE JEWISH NEWS

Member: American Association of English-Jewish News-
cpers, Michigan Press Association.
Services: Jewish Telegraphic Agency, Seven Arts Feature
Syndicate, Bing Features, Central Press Association.
Published every Friday by The Jewish News Publishing
Co. 70S-10 David Stott Bldg., Detroit 26, Mich., WO. 5-1155.
Subscription $3 a year; foreign $4.
Entered as second class matter Aug. 6, 1942 at Post Office,
Detroit. Mich., under Act of March 3, 1879.

PHILIP SLOMOVITZ. Editor
SIDNEY SHMARAK Advertising Manager
RUTH L. CASSEL, City Editor

Vol. XVI—No. 18

Page 4

January 13, 1950

Sabbath Scriptural Selections

-

This Sabbath, the twenty-fifth clay of Tebet,
5710, the following Scriptural selections will be
read in our synagogues:
Pentateuchal portion—Ex. 1:1-6:1.
P)ophetical portion—Is. 27:6-28:13; 29:22, 23.
On Thursday. Rosh Hodesh Shevat, Num.

p8:1-15 will be read during morning services.

Investing In Israel

Israel's Weapon: Hope Plus Faith

In a description of Israel's progress during the past
year and the valor with which the infant state managed
"to keep her head above water while absorbing one,,of the
greatest masses of immigrants in history," the New York
Times correspondent in Tel Aviv (Gene Currivan) com-
mented:

"After a year and a half of existence made possible
by what appeared to be near miracles, still more miracles
are needed to carry on. There is one commodity not lack-
ing here, and that is hope, coupled with faith."
This is a most realistic approach to a most interesting
situation in Israel. In spite of the influx of new settlers,
the - burdens placed on the country's citizens; the reduction
in income for support of newcomers from the United States,
the new state carries on and points the way to progress to
nearby lands and in fact to stagnant Europe.
Here are typical examples of true accomplishments. Al-
though Israel's exports are less than a fifth the size of
imports, the Jewish state's goods are beginning to reach
markets throughout the world. The following interestinc ,
list of recent export transactions has been published by the
Tel Aviv-Haifa Chamber of Commerce:

Chocolate was exported to the U. S. and Canada; honey to
France; canned pUree of tomatoes to Britain; wines to Britain,
the U. S. Switzerland and Sweden; biscuits to the U. S.; knitting
wool to Hungary; raincoats to Holland; furs to Switzerland;
shoulder pads for coats to South Africa; knitted goods to Brit-
ain; optical lenses to Yugoslavia; shaving brushes to Holland;
razor blades to Romania; machines for the extraction of citrus
oils to Jamaica; Hebrew books to the U. S., Canada, Britain, Hol-
land, Aden; ceramic work to the U. S. and Britain; feathers and
candles to the U. S. Citrus by-products, orange oil, dental equip-
ment and artificial teeth are also being exported.

In numerous other fields Israel is showing progress.
Her flag was hoisted ,last week, in New York, on the 3400-
ton new citrus transport vessel, Nadar, when the British-
built boat was acquired by the American-Israel Shipping Co.,
agents for the Zim Israel Navigation Co. A crew of 28 Is-
raeli officers now is navigating the ship.
Every field of endeavor has brought forth tremendous
energy in Israel. This must not be interpreted as an indi-
cation that Israel is on her own. On the contrary, the tens
of thousands of newcomers remain the responsibility of all
Jews. Only a small portion of the expense of caring for the
240,000 Jews who settled in Israel in 1949 was covered by
American funds. A major responsibility for uninterrupted
activity rests upon US, the fortunate Jewish community of
the United States.
The purpose of emphasizing the advances made in Is-
rael's export economy is to encourage others to join in the
tremendous task of building the new land. While visiting in
Jerusalem, Harry N. Rosenfield, a member of the three-
man United States Displaced Persons Commission, stated
last week: "American capital is missing a good bet by not
investigating the investment possibilities here and acting on
them." He saw a great opportunity for foreign investors
and expressed the view that fortunes could be made in Is-
rael by those who got in on the ground floor.
The objectives and the opportunities are clear. It is up
to American Jewry first to support Israel in her efforts to
settle the newcomers—thereby liquidating the problem of
Jewish homelessness and humiliation—and to assume a ma-
jor role, through investments, in the country's economic
development.

An import license is required for virtually
everything imported into Israel. Import licenses
are granted on the merits of each case. -The two
principal criteria are the country's need for• the
goods and the possibility that their import will
ultimately increase the availability of foreign
exchange.
Americans desiring to establish new factories
in Israel and .to export the necessary capital
equipment can obtain an import license directly
through the Israel Consulate, 11 E. 70th St., New
York 21. The importation of raw materials re-
quired as working capital for a new factory can
be arranged beforehand.
Exports from Israel also require licenses in•
most cases.
CAPITAL TRANSFER CONTROLS
The government is attempting to encourage
the import of as much capital as possible—
money, equipment and industrial supplies. There
are no difficulties in transferring dollars or cap-
ital in the form of machinery and equipment to
Israel. All transfers must be passed on by a
joint committee of the Israel Treasury and the
Ministries of Trade and Industry and of Supply
and Rationing to determine the necessity for
such goods in the Israel economy,
Capital invested is not withdrawable from
Israel withOut special Treasury permission. Gov-
ernment officials have stated that they would
allow annual withdrawal of profits or payments
of dividends in the currency of the original in-
vestment up to 10% of the invested capital.

TAXATION
All Israel corporations actually pay two taxes:
the flat corporation tax, which is 25% on profits,
and a 25% income tax on the remaining net in-
come of earnings (tax on dividends). Quite
apart from these two taxes, if a dividend is dis-
tributed, the second 25% tax on dividends al-
ready paid by the company is credited to the
individual shareholders' tax bill. In this way
double taxation of dividends above the first 25%
tax on corporation - profits is avoided in Israel.
Industrial equipment, the most essential raw
Materials and auxilary materials are either ex-
empt from customs duties or are having their
duties lowered.
Investors should inquire beforehand at the •
Economic Department of the Jewish Agency, 16
E. 66th St., New York 21, to ascertain whether the
items which they expect to import are subject
to duty and at what rate.
INFORMATION CENTERS IN U. S.
Investors who desire to find out about invest-
ment possibilities in Israel,. or who are ready to
invest there, have at their disposal the facilities
of the Embassy of Israel (Office of the Economic
Counselor) in Washington, D. C., the Israel Con-
sulate-General (Commercial Department) in
New York City, and the Jewish Agency's Eco-
nomic Department in New York City.
Visiting foreign investors have the following
three main sources of information in Israel:
The Government of Israel Investment Center (Hakirya,

Israel) established under the joint auspices of the Ministry of
Trade ' and Industry and the Treasury.
The Economic Department of the Jewish Agency (Jew-
ish Agency Building, Jerusalem; 33 Rothschild Boulevard. Tel
Aviv), with its industrial Information Bureau (13 INiontefiore
St., Tel Aviv).
The Israel Manufacturers' Association and Chamber of
Commerce. The former has branches at 13 Montefiore Street,
Tel Aviv; Bevis Building, Haifa and 7 Ben Yehuda Street,
Jerusalem. The latter is at 5 Rothschild Blvd., Tel Aviv; 63
hingsway, Haifa, and Mizpah Building, Jerusalem.

For investors who do not have the inclina-
tion, time or knowledge to invest directly in an
Israel business and still desire to invest in some
Israel enterprise, there are these three invest-
ment companies which will do the investing for
them.

Palestine Economic Corp., Si)912 Madison- Ave., New
York; American Palestine Trading Ochry. (Ampal), 386 Fourth
Ave., New York; American Bretz Israel Corp., 130 %V., 42n4I•
St., New York.

In addition, there is a brokerage house spe-
cializing in sales of Israel securities in the U. S.
—American Palestine Securities Co., 50 Broad
St., New York.

The New Jewish Center Branch

The Jewish Community Center of Detroit enters a new
area with its program of expansion which is materializing
with the completion of the branch•building on Davison and
Holmur. The dedication ceremonies this week-end will be an
occasion for the community at large not only to extend its
greetings to the Center movement there but also to declare
its readiness to cooperate with the Center in its efforts to
reach the thousands of young people whom it will now be in
position to serve in the Dexter area. We join in congratulat-
ing the Center's officers on the completion of its imposing

branch.

ISRAEL'S WATER-FRONT SHOWS
SIGNS OF PROGRESS