PURELY COMMENTARY
REAL ESTATE
UPDATE
r"--
Ray A. Fox, Licensed Realtor
TIME IS OF THE ESSENCE
QUESTION: I have just
agreed to purchase a home. It
is extremely important that I
move in within three days after
the closing date. Is there some
way I can prevent the posses-
sion date from being delayed?
ANSWER: If closing is impor-
tant within a certain time limit,
be sure that the phrase, "time
is of the essence" is inserted
into the sales agreement.
If this key phrase is not
included, then either the buyer
or seller can delay settlement
for a "reasonable" time. What
may be reasonable for one
party may be unreasonable for
the other. At this juncture, it
may become a matter for the
court to settle. Be sure to con-
sult with your Realtor and
attorney.
Paying Debts:
Israel Ranks High
PHILIP SLOMOVITZ
Editor Emeritus
4-a-1
n
Please Phone
Ray A. Fox
or drop in at
CRANBROOK
ASSOCIATES, INC.
32440 Franklin Road
Franklin
Phone: 626-8700
Presented in cooperation with
in. CHASE
Chase Manhattan of Michigan
Philip Spina. Vice President
NEP
Bloomfield Hills: 313.645-6466
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FRIDAY, SEPTEMBER 27, 1991
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ualified students of
economic conditions
affecting foreign in-
debtedness have begun to
treat Israel's role with
respect due a democratized
and well-functioning na-
tional entity. It was all to
easy for those who are pre-
judiced against Israel and
relish gathering threatening
occurrences to utilize them
to judge events negatively.
There was even the at-
tempt to build up Israel's
application for the $10
billion fund to provide for
the settlement of Soviet
Jews as a way of destroying
the American-Israel friend-
ship.
It did not take too long for
admissions to multiply that
the functioning relationship
between the two nations is
too valuable and too impor-
tant as an international fac-
tor to justify dangerous
treatments of honorable
negotiations.
Israel's programmatic
firmness in its application
for the loan to assure the
rescuing of hundreds of
thousands of oppressed in
Russia is gaining admira-
tion and will surely meet
with approval in the estab-
lished American spirit.
It is important for those
who are skeptical and who
fall into the trap of being
misled into animosities to be
aware of the manner in
which Israel repays its debts
whenever they come due —
especially in honoring the
relationship with the United
States.
The extent of the
fulfillment of respon-
sibilities is remarkably
summarized in a study that
was made for AIPAC —
American Israel Public Af-
fairs Committee — by its
economic analyst Steven
Liebes. His expert analyses
are especially valuable at
this time for consideration
by the White House and
State Department.
They are surely considered
seriously by congressional
leaders whose support is
vital in the rescue efforts. It
is necessary to welcome the
guarantees evolved in the
Liebes' study which show
how Israel honorably pays
its debts. His expertise is
valuable as we note the em-
phasis his gives to the
following:
Q
"TIME IS OF THE
ESSENCE" is the key
phrase in the agreement
when closing date is vital.
Foreign debt-service is
the annual level of foreign
debt payment which a
country makes to foreign
lenders. The relationship
between debt-service and
exports is crucial in assess-
ing a country's ability to
repay debt. Increased ex-
ports mean increased
foreign currency. This is
important because foreign
debt is paid in foreign
currency.
Lower foreign debt-
service to export ratios in-
dicate lower amounts of
annual debt repayment in
relationship to amount of
foreign currency a country
can generate. Israel's an-
nual foreign debt-service
as a percentage of exports
has decreased from 21 per-
The proposed
absorption
guarantee program
will increase
Israel's annual
foreign debt-
service by less
than $1 billion per
year. This is an
insignificant
increase relative
to the size of
Israel's economy.
cent in 1988 to 15.5 percent
in 1990. According to the
Bank of America, during
the past five years, foreign
debt service to export
ratios have averaged 23
percent for all non-
problem countries and 43
percent for all problem
countries.
The proposed absorption
guarantee program will in-
crease Israel's annual
foreign debt-service by less
than $1 billion per year.
This is an insignificant in-
crease relative to the size of
Israel's economy and ex-
port earnings.
Israel's foreign debt-
service to export ratio is
highly favorable. Even if
Israel were to begin servic-
ing $10 billion in additional
absorption guarantee debt
today, its foreign debt-
service to export ratio
would be a highly favor-
able 21 percent. This figure
is still lower than that of
Canada, and indeed lower
than the overall average
for Bank of America's non-
problem countries. With
the inevitable economic
growth, the debt-service to
export ratio will remain
virtually unchanged.
It is obligatory for the
responsible American
leaders and for all who are
concerned with American
foreign debt services to rec-
ognize that Israel is con-
cerned not only with finan-
cial matters but also with
economic planning to fulfill
its responsibility. The media
must also take into con-
sideration the serious
manner with which Israel
treats these duties. Much of
this seriousness is now
regrettably maligned in the
pending application for the
$10 billion loan.
When the issue is debated
without rancor, different
views are always con-
tributing to honorable
discussion. However, pre-
judices often predominate.
In the Detroit News of Sept.
10, there was a shocking
misrepresentation of basic
facts relating to Israel's
functions as a sovereign
state. Everything that could
possibly be assembled to por-
tray Israel in the most objec-
tionable form was incor-
porated in the misleading
editorial treatment in a
newspaper that had a good
record for honorable treat-
ment of the Middle East
situation. The most
honorable and most human
of Israeli policies — that of
rescuing and rehabilitating
hundreds of thousands of op-
pressed Jews — was com-
pletely ignored. It is such
treatment that merits objec-
tion; it is to such unfairness
that we must call attention.
Much more objectionable
is the manner in which an
ill-minded member of the
Israel Knesset — himself a
representative of a not-too-
respected minority group —
saw fit to abuse the presi-
dent of the United States.
His name calling was obnox-
ious and he spoke only for
himself. It will never be the
way of cementing two
nations' friendship. That is
what must predominate.
The appeal is for justice,
humanism and realities in
dealing with the duty to
Israel . Let us keep appeal-
ing to reason in the present
situation that demands em-
phasis and support for
Israel's striving for
humanism in assuring
fulfillment toward receiving
and rehabilitating the op-
pressed. This end to
homelessness is Israel's
basic commitment.
❑