THE DETROIT JEWISH NEWS Friday, May 16, 1975 21 Trade Pact Promotes U.S. Investments in Israel WASHINGTON (JTA) — Israeli Finance Minister Yehoshua Rabinowitz and Secretary of the Treasury William E. Simon signed a joint statement here Tues- day aimed at facilitating the promotion of investments in Israel by American 'compa- nies. They also initiated a treaty on double taxation which, when ratified by Congress, will provide addi- tional inducements for American investors in Is- rael. The signings marked the conclusion of two days of negotiations between Si- mon and Rabinowitz who serve as co-chairmen of the U.S.-Israel Joint Committee for Investment and Trade. Rabinowitz said "This is the first time such a com- prehensive agreement has been signed by the two countries." He and other Israeli officials noted that the agreements entered into here and Israel's agreement with the European Common Market countries signed in Paris last week should be of particular interest to Amer- ican investors because Israel is now in the position of en- joying "a very unique situa- tion." They pointed out that the agreement with. the Common Market makes Is- rael part off -the EEC area with an annual gross na- tional product of $800 bil- lion. Griffin Critical of Fuibright's UN Guarantee to M.E. Peace WASHINGTON, (JTA) — For-mer Sen. J. William Fulbright recommended to the Senate Foreign Rela- tions Committee last week that the United Nations Security. Council should guarantee Israel's security. His view drew an imme- diate negative reaction from Sen. Robert P. Griffin of Michigan, the Republican assistant leader in the Sen- ate, who characterized the recommendation as "not very reassuring to Israel." Fulbright, testifying in the second day of the exten- sive hearings the committee is holding in the Senate's first assessment of the UN in 20 years, said that the UN should make a settlement of the Middle East issues. "As long as Israel was created by the Security C6uncil," he testified, "what would be more appropriate than for the Security Coun- cil to guarantee its secu- rity." Fulbright suggested that the U.S. should make "the Security Council and other UN organs the cen- tral forum of our foreign relations, particularly on matters - of pressing import like the Middle East." He said he was "well aware of the low esteem in which the UN is held by Is- rael and perhaps others," he said. "But a UN guarantee would also be a great power guarantee, more specifically a Soviet-American guaran- tee, and that, one hopes, would inspire some measure of confidence." Former -Supreme Court Justice Arthur Goldberg, testified as a former perma- nent IT.S. representative to the 'UN. He said a move- ment is now "underway to deny Israel its proper place in the General Assembly and in the specializied agen- cies." - Meanwhile, two New York Democrats, Reps. Ben- jamin Rosenthal and Jona- ton Bingham charged the Ford Administration with pursuing policies that would lead to Israel's destruction, after it was revealed that Jordan was receiving U.S. "Hawk" missiles. Sen. Lowell Weicker (R- Conn.) was equally criti- cal of the U.S. reassess- ment of Middle East pol- icy. Weicker told a group of newsmen in his home state that he was divorc- ing himself from President Ford's reassessment, which he claimed was the result of "personal emo- tions" by President Ford and Secretary of State Kissinger. In New York, Sen. Frank Church (D-Idaho) charged that the Administration has sought to create the impres- sion that because Congress refused to provide "elev- enth-hour military aid" to Cambodia and South .Viet- nam this has created doubt toward the American com- mittment elsewhere, espe- cially Israel. "There is no foundation whatever for this insinua- tion," he declared. "The United States is committed to the survival of the state of Israel not only because it is morally right but because a strong and independent Israel is in the American national inter- est," Weicker said. Egyptian Officials Take U.S. Tour WASHINGTON (JTA) — Welcomed here by Ameri- ca.'s highest officials, 10 members of the Egyptian People's Assembly have left Washington for the south- west and the Pacific coast on their 17-day trans-conti- nental tour paid for by the U.S. Treasury. Last week, President' Ford received the nine men and one woman at the White House and Vice Pres- ident Nelson Rockefeller held a reception for them. Presidential press secre- tary Rori Nessen said that the President's reception symbolized the U.S. inten- tion to work for peace in the Middle East and the warm and friendly relations exist- ing between Egypt and the United States. The joint statement signed by Rabinowitz and Simon reaffirmed the pol- icy of their respective gov- ernments to oppose re- strictive trade practices and boycotts against coun- tries friendly to either. Secretary of State Henry Kissinger and Un- dersecretary Joseph J. Sisco were reportedly unenthusiastic about in- cluding such a "political" statement, but did not op- pose the Israelis on the matter. The treaty on the avoid- ance of double taxation rec- ognizes Israel's compulsory loans as creditable taxes for U.S. income tax purposes. The joint statement also noted that Israel has -been approved as a supplier of AID (Agency for Interna- tional Development) fi- nanced commodities and services and as a supplier for off-shore procurement of the U.S. Department of Defense. In addition to the tax treaty, the agreement calls for the following in the area of investments: The Over- seas Private Investment Corp. which already pro- vides insurance to U.S. investors in Israel, will ex- tend its guarantees to Is- raeli development loans and will participate directly in. ,. financing U.S. investments in Israel through long term convertible debentures. The U.S. will arrange top-level management business mis- sions and seminars to ex- plore trade and investment opportunities in Israel; the U.S. will publicize the many advantages Israel offers for- eign investors. EEC Admits Israel The agreement recog- nizes the special circum- stances that characterize Israel's trade, particularly in food and feed grains and the importance of assuring Israel access to raw mate- rials. - In order to assist foreign investors, the Israeli govern- ment has developed a "special business package" to help manufacturers in the investment phase by of- fering financial leverage and in the operating phase by providing low cost work- ing capital and rebate for in- direct taxes. According to the U.S. In- ternal Revenue Service Code, American invest- ments in Israel enjoy the special "less developed coun- try" status thereby entitling the company to a higher credit for taxes paid to a for- eign country. A PSYCHO-CYBERNETICS • • • • Group has started! Have YOU read the book? Do YOU like the book? Do YOU agree with the book? Are YOU a WINNER? This group is for POSITIVE PEOPLE to STIMULATE other POSITIVEPEOPLE. If your answer is yes, call SHIRLEY CASH 543-6488 Al's BRUSSELS (JTA) — Is: settlement for the entire Foreign Car Service rael's Foreign Minister Mediterranean area. EEC officials said that negotia- Yigal Allon, and the current tions with the Arab states president of the Ministerial Council of thd European will start in autumn. They Economic Community, Ire- said that the EEC Commis- land's Foreign Minister sion expects its mandate land's Garrett Fitzgerald, signed from the nine member here Sunday Israel's eco- states by late June. Negotia tions with Morocco, Tunisia nomic incorporation treaty with the nine-states com- and Algeria are near com- pletion and should be con- munity. The treaty, which 1018 W. 9 Mile Rd. cluded before the end of the will be enforced as of July 1, Alfons G. Rehme year, the officials said. was also signed by Commis- sion President- Francois- Xavier Ortoli. Allon said at the cere- mony, which took place at the Val Duchesse Palace near Brussels, that the IS EXPANDING ITS BOYS & PREP DEPT. agreement has not only eco- nomic but also great politi- 4: OUR NEW SIZE RANGE WILL BE 10 THRU 20 cal importance. He said: "Europe is pav- ing the way to a new kind of cooperation which, we be- lieve, may provide a model for regional cooperation in our area. It may seem uto- pian today, but we are sure that the day will come when the states of the Middle East will live in peace, will trade freely with each other • WELL-NOTED IN BOYS WEAR FOR MANY and exchange their knowl- edge and acknowledge the • YEARS HAS JOINED OUR STAFF- AS BUYER. mutual advantage of all + HER EXPERTISE: IS NOW AVAILABLE! their populations." THE NEWEST IN LEISURE SUITS SPECIALIST IN VOLKSWAGEN AND PORSCHE CARS CALL. 548-3926 548-4160 541-9704 FERNDALE MICH. Between Livernois 8 Pinehurst P144+++++4944++++ + 44 4+ +++++,14+ 4+ 44 4t HARUARD SHOP 11, ti. • We Are Pleased To t Announce That it,LEE SHLO The agreement provides for the complete abolition of all customs duties and other forms of taxation on Israeli exports, industrial and agricultural, to the community. AND BAR MITZVA SUITS ARE ON THEIR WAY TO START THINGS ROLLING ... AND YOU CAN BE SURE LEE HAS DONE A BANG-UP JOB! European customs will 43 drop as of July 1 by between 43 40 to 60 percent, according NO MATTER WHAT SIZE to the product, and will be completely cancelled by OR OCCASION July 1, 1977. Certain restric- tions still exist on a number of products, including citrus derivatives, at Italy!s de- mand. Allon said that his coun- TRY US FOR A PLEASANT SURPRISE ... OR JUST COME IN try's agreement with the SAY HELLO, 'CAUSE IT'S ALWAYS NICE TO SEE OLD FRIENDS. ECC shows that Europe is 43 not intimidated by Arab threats. He also said that the pact shows that the Arab boycott against Israel is not working. In spite of Allon's declara- 29760 SOUTHFIELD RD. NR. 121/2 MILE RD. tion, EEC officials went out of their way to stress that + IN THE SEARS-SOUTHFIELD PLAZA 557 - 2290 sir the agreement signed with Israel is only part of a global i6i.i.414+++++++++++++++++++++++4 WE PLAN TO HAVE YOU COVERED! 4: HARUARD SHOP L 1.1; r L. L. 1 1 Te- 1 ♦ k -