CLOSE-UP enton Harbor — An Israeli car manufacturing corn- pany will bring its business to this economically distressed city — a move that state commerce officials said should open a gateway for future trade agreements between Michigan and Israel. Elkon Brothers Ltd. of Israel and Entech Engineering of Troy an- nounced in January they would build the world's first automobile for hand- icapped drivers in Benton Harbor, promising at least 500 new jobs for the financially strapped city in southwest Michigan. "When one business comes in, others will follow," said Pauline Jaques Millichamp, the Michigan Department of Commerce liaison for the automobile plant project. "This is a really exciting project, but what makes it more exciting is that the two companies actually are committed to helping Benton Harbor." The car company would be the first Israeli business to enter Michigan since State Commerce Director Doug Ross and Israel Trade Commissioner David Litvak signed a pact in January 1987 that estab- lished ongoing commercial relations. Ross said Israel produces more technology than it needs. And Mich- igan, he said, may be able to apply the information so both Michigan and Israel can reap benefits. "We want to show how states and businesses can take advantage of Israel as another state," Ross said. "It may also pave a path for Michigan firms to enter Europe." Meanwhile, state Rep. Burton Leland, D-Detroit, is drafting legis- lation to create a business exhange called the Michigan/Israeli Commer- cial Horizon. MICH, he said, would solidify the 1987 agreement. Leland started lobbying for a business exchange with Israel after he and Ross went to Israel last A blighted corridor in downtown Benton Harbor. Road to Recovery An Israeli automobile may mean jobs and prosperity for Benton Harbor, one of Michigan's most depressed cities KIMBERLY LIFTON Staff Writer December. Thxas, Massachusetts and Virginia have formed similar trade commissions. Despite the recent attention given to Benton Harbor, residents are skep- tical. Other fancy proposals have brought false job hopes, enhancing their doubts that Elkon and Entech will scrap the project. "When they start laying the foun- dation, then I'll be real happy;' Ben- ton Harbor Mayor William Wolf said. "We've had a lot of false hopes!' Many residents are still talking about famed prize fighter Mulim- mad Ali, who owns a summer home just south of the city. City and coun- ty officials said Ali promised to help save the economy with a multi- million shoe polish factory. The fac- tory was never built. "I don't think there is anybody in town who wouldn't be happy if the car gets off the ground;' said Jeff Ibbian, who owns a Benton Harbor-based scrap metal business. "But so many grandiose schemes come and go around here, it is hard to believe anything." Added Julie Keller, a housewife and community activist, "I'll beliee it when I see it!' Company and government leaders said the doubts are well-founded, but added the residents have nothing to fear. Chuck Schrent, economic devel- opment director for Berrien County, said such skepticism is not unusual, but added he was optimistic the pro- ject would break ground. "Too many people have gone there, saying they will fix it, and have run away," said Entech President Hulki Aldikacti. "We are not going anywhere else!' Aharon Meytahl, Elkon's execu-