Prosperity Trends Reflected in Fund-Raising * U. S. Views on Financial Needs Of Israel - Smolar's Column on Page 2 VOLUME 27, No. 21 HE JEWISH NEWS A Weekly Review of Jewish Events The Truth About Arab Refugees Commentary, Page 2 Christian Lebanese Fight Subservience Michigan's Only English-Jewish Newspaper—Incorporating The DetrOit Jewish Chronicle 27 17100 W. 7 MILE RD., Detroit 35—VErmont 8-9364--July 29, 1955 Editorial, Page 4 $4.00 Per Year, Single Copy 15c Arab-Israel Tensions Included In Next UN Assembly Agenda Greater Flexibility Provided In New Israel-German Pact . Direct JTA Teletype Wire to The Jewish News COLOGNE—Israel and West Germany have concluded a new agreement which provides for greater flexibility in types of goods Israel may order from Germany as reparations payments under ' terms of the Luxembourg agreement and which will permit Israel to Obtain a greater quantity of basic machinery and equipment needed for long range development of the Jewish state. Announcement of the signing- of the agreement was made here Tuesday by the Israel purchasing mission. It was signed in _ the new mission headqudrters in this city, becoming the first such agreement ever signed on Israel extra-territorial soil. The pact provides that orders for goods in "category one"— development machinery and equipment—may exceed the total assigned to this category in amy year, and the difference between the prescribed maximum and amount ordered may be deducted from "category two"—ferrous and non-ferrous metals. Israel would also be allowed to order such goods instead of amounts of foreign currency which Germany sets aside for payment of Israel pur- chases of British petroleum. This provision, however, is not likely to be needed or used by Israel. The significance of the pact was underlined by spokesmen for the mission who,.pointed out that during the next four to six years Israel's -development plans call for _German reparations to provide goods worth $67,000,000 or _40 percent of all such develop- ment machinery and equipment. Included in such orders would be ocean freighters, mining machinery equipment to seta up factory to produce electric light bulbs, equipment --to set up sugar refinery the textile mills, railroad : signal equipnient, and parts for Mas- sive pumps which operate the Country'S hiige irrigation system. UNITED NATIONS, N. Y. • (JTA)—Israel-Arab conflicts and tensions will again be debated by the next session of the General Assembly, which is scheduled to open here September 20, according to the provisional agenda for the Assembly. . The first item touching upon the Palestine problem will come up with t h e report of the Security Council early in the. 10th regular session of the Asseinbly. So far this year, the Security Council at its meetings has handled only one issue, "The Palestine Question." Following the Security Council's report will come • other routine reports, one from the director of the United Nations Relief and Works Agency for Palestine Refugees in the Near East, and another from the UN High Commissioner for. Refugees.. Other agenda items that will be of interest to Jewish organizations represented here will include: a draft convention on human rights; reports from the Economic and Social Council dealing with discrimination a n d prejudice against minorities; t h e pro- posed establishment of. a Special UN Fund f o r Economic Development. of underdevel- oped areas, and matters pertaining to social and economic affairs throughout the world. Turkey Seeks To Mediate Arab-Israel Conflict ISTANBUL (JTA)—Newspapers close to Turkish government have confirmed Tur• key's interest in mediating between Israel and the Arab states. Two newspapers, "Milli- yet" and "Tercuman," gave front page space to a statement by a Foreign Ministry spokes- man who admitted the reports were true and added that so far no official approach has been made to the parties involved in the dispute. `Milliyet" also reported that diplomatic circles in Lebanon, Iraq and Jordan favor Turkey's move. Ben. Horin, Israel Charge d'Affaires in Ankara', refused to comment on his government's position,- but said that such an offer would be given careful consideration. Israel Reaches "Oral Agreement" With Egypt; Seeks Jordan Pact - JERUSALEM (JTA)—Extension of a local commander's agreement between Israel and Jordan in the Jerusalem area was discussed here and negotiators will get down to specific proposals. This followed a meeting on the Gaza frontier at which Israel and Egyptian negotia- tors to an "oral agreement" on details of a local. commander'spact. - At a special session here, at which "good progress" was chalked up, the Israel and Jordan negotiators exchanged drafts of a new commanders pact. The present Israel- Jordan commanders agreement covers only the Jerusalem area, but the extension will, if accepted, cover the entire demarcation line between the two states, the largest border between Israel and any of the four neighbor Arab states. Maj. Gen. E. L. M. Burns, the reappointed United Nations truce chief, will &lair the meetings. At the Gaza session, where Gen. Burns also presided, it was officially stated that "progress in drafting clauses regarding representation and communications" w a s made On the local commanders' agreement. There was, how eve r, a divergence between the Egyptian written draft of the document and the "oral agreement." The "o r a 1 agree- ment" is interpreted in two different ways, with Gen. Burns and the Israel delegate on one side, and the Egyptian delegate on the other. (The New 'York Times reported from Gaza that 11 of 14 clauses in t h e draft local "commanders agreement are settled, with only three clauses stillzto be agreed upon. .These three, the dispatch says, deal with the degree of UN participation in the operations of the . lOcal commanders agreement, and with the level on which the pact will be signed, The Israelis are represented as wanting it signed on high political levels and the Egyp- tians are reported to be opposed, preferring signature on an operational. level.) Israel objected to an Egyptian charge that Israel did not want the UN involve& in the pact. The Israel delegate insisted, "we want them, they help us settle disputes."--: (Egypt's leaders meanwhile continued their • attacks on Israel, and sporadic battles con-_ tinued on several fronts. Story on Page 6.) , , . 58 ARE DEAD Eight Americans in El Al Crash Direct JTA Teletype Wire to The Jewish News - B-G . at Helm Again . David Ben-Guriorr may return to the helm of the government of Israel. Once again, as a result of the election on Tuesday, B-G may be called upon to organize a coalition government. On the eve of the election, Mr..Ben-Gurion, who is 65, stated that be- cause of ``a threat within - to Israel's security, his plans are to concentrate on populating and developing the desert areas which make up .60 :per cent of krael's territory. Mr. Ben- Gurion is the acknowledged leader of Mapai, the labor party which is the largest single political force in the Jewish state. Prime Minister of Israel from the day of the country's rebirth _ in 1948 until Dec. 7, 1953, when he resigned the Premier- ship, mr. Ben-Gurion returned to the Cabinet as - Minister of Defense early this year. His.successor, Moshe Sharett, be- .carne .Premier. on Jan. 26, 1954, and is expected to return t9 the ,office •of Foreign Minister. , VIENNA — The Israel Air- line in Vienna announced that an El Al- plane crashed on the Greek-Bulgarian bor- der. The Vienna office said the majority of the 51 pas- sengers are Israelis, others are Americans, Austrians and British. NEW YORK = The follow- ing statement was received by the El Al office here from Israel,- from Louis Pincus, managing director of El Al: "An SOS message was re- ceived by El Al operations frOm the El Al constellation aircraft which was flying from -Vienna to Lydda and was close to the Q-reek-Bul- garian border. A- little later, a message was received from Athens Airfield that the air- craft made a forced landing near Tsirbanovo, Bulgaria, near the Greek border,. after it had been shot upon.. On board were 4'7_ adult passen gers, three children • and a (Continued.-on Page 4) - Labor Loses Ground In Israel's Elections, Make Tel Aviv Gains Direct JTA Teletype Wires to The Jewish News TEL AVIV—With more than 500,000 of the estimated $50,000 votes counted by noon Wednesday, Mapai had - chalked up a substantial lead of 33.25 percent. However, the Labor Party was almost four percentage points behind its final totals in the laSt general elections. The Rightist Herut Party Showed greatest gains- while the Centrist General Zionist. Party showed the greatest loss. The standing of other parties at this point is Poale Mizrachi, .10 percent; Leachdut Avodah, 8 per- ent; Agudah, 5.25 percent; Progressives, 4.25 percent, and Communists, 4 percent. The leftwing Mapam tabu- lations were not announced. When the percentage of votes counted reached 70, late on Wednesday, Mapai again emerged as the leading party in Israel. Herut, however, jostled the General Zionists out of second place into fourth, with the religious front-e--Mizrachi and Poale Mirachi—moving into third place. Mapai got 33 percent of the total vote, losing four percentage points as against the last general. election. Herut has 12 percent as against six in the last general election. General Zionists have 10 percent as against 16 in the last election. - In Tel Aviv municipal elections, Mapai is leading. the General Zionists, 30.5 percent to 27.5 percent. Should the final results give victory to Mapai,' this will be the first (Continued on' Page 3)