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.

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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
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• We Are Pleased To
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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.

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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-
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try's agreement with the
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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.
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