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Europe Community OKs
$210 Million Israel Loan

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>

Brussels (JTA) — The Eu-
ropean Community has
agreed to a $300 million
package to compensate
Israel and the Palestinians
in the West Bank and Gaza
Strip for their economic
losses arising from the Per-
sian Gulf war.
The 12 E.C. foreign min-
isters March 5 approved a
$210 million loan to Israel
and a $90 million grant to
the Palestinians.
The "symmetric" aid to
both Israelis and Palestin-
ians, first proposed by For-
eign Minister Hans-Dietrich
Genscher of Germany, was
approved in principle last
month, but no amount was
set at the time.
The amount was the sub-
ject of debate by the E.C. for-
eign ministers, who were ac-
ting on a proposal submitted
by the European Commis-
sion, the E.C. executive
body.
A initially proposed sum of
$335 million, mentioned
over the weekend by French
Foreign Minister Roland
Dumas, apparently was
scaled back by reducing the
Palestinian grant by $45
million.
At the same time, the E.C.
agreed to subsidize the in-
terest on the Israeli loan in
the amount of $40 million
from its own budget. The
loan will offered at prevail-
ing market rates.
It is intended to help Israel
restore its balance of
payments, which suffered
from reduced exports and a
sharp drop in tourism at-

tributable directly to the
Persian Gulf crisis.
The Palestinians are to be
compensated for the econ-
omic losses they suffered as
a result of prolonged curfews
and other restrictions, which
kept them from their jobs in
Israel proper, and the loss of
remittances from Kuwait,
where many held jobs.
Their aid will be channel-
ed through Palestinian
banks and agricultural co-
operatives. It will be ear-
marked to improve economic
and social conditions, in-
cluding the construction of
Palestinian schools and
hospitals in the territories.
The European Commission
also proposed to facilitate
the entry of more Palestin-
ian agricultural products
into the European market.
There were no conditions
attached to the aid package.
But diplomatic sources here
said the E.C. foreign min-
isters share the French view
that it is "time for Israel to
accept the presence in the
territories of a represent-
ative of the E.C. Commis-
sion."
Israel objects to an official
E.C. presence in the ter-
ritories on the grounds that
it would imply diplomatic
recognition of some future
Palestinian entity in the
West Bank and Gaza Strip.
Israel argues that the E.C.
Commission already has dip-
lomatic representation, in
the person of Gwyn Morgan,
who has ambassadorial sta-
tus and an office in Tel Aviv.

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Jerusalem (JTA) —
Israelis now have stronger
negative attitudes toward
Germany than at any time
in the last 10 years, accor-
ding to the latest public opi-
nion survey.
It goes deeper than
resentment of Germany's
equivocal policies in the re-
cent Persian Gulf crisis, ex-
perts said.
The poll was conducted
under the auspices of the
Koebner Chair in German
History at the Hebrew Uni-
versity.
A random sampling of
1,200 Israeli Jews over age
18 was interviewed. Of that
number, 36 percent believed
German-Israeli relations

could not be described as
normal, up from 20 percent
who felt that way in a poll
taken last year.
Ten years ago, 30 percent
gave a negative response.
According to 34.5 percent
of the respondents, today's
Germany is not a "different
Germany" from the Ger-
many of World War II, the
Third Reich.
Such feelings were re-
ported by only 13 percent 10
years ago.
Asked to rate five nations
— the United States, France,
Germany, Holland and the
Soviet Union — only the
Soviet Union received a
more negative response than
Germany.

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