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. 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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. ❑