Israel’s Growth Speeded By German Reparations

Press, Volume CVI, Issue 31084, 13 June 1966, Page 11

Israel’s Growth Speeded By German Reparations

(N.Z.P. A.-Reuter—Copyright) TEL AVIV. The worst riots Been in Israel were probably those which took place outside the Parliament when members assembled to ratify the agreement between the Governof Israel and that of the Federal Republic of Germany for the payment of reparations for material damage caused to Jewish people by the Nazis.

Israelis were then split. Many considered that the young Jewish state should have no relations with any Germans. It was argued that even the rightful restitution of the booty taken by the Nazis would desecrate the memory of the victims. Almost hysterically, the shout went up that any reparations from Germany to Israel would constitute bloodmoney. The decision to make the agreement was not an easy one for the Israeli Government leaders, the then Prime Minister (Mr bavid Ben-Gur-ion) and his Foreign Minister, the late Mr Moshe Sharett. Their country was in the throes of an economic crisis resulting from the influx of mass immigration. Hundreds of thousands of newcomers had to be housed and fed and to be given jobs. Those who had perished at the hands of the Nazis would have wanted to see the new Jewish state strong enough to provide a haven for the survivors, said the supporters of the agreement. That was 14 years ago. Recently, the books of the Israeli agreement with West Germany were closed, and the balance sheet drawn. Under the reparations agreement, Israel has received the equivalent of £284 million in equipment, goods and services. Proved Wrong Numerous Israelis still wish to have nothing to do with Germans. Many still believe that the reparations agreement was morally wrong. But at least some of the prophecies of 14 years ago

have also proved to be wrong. It was said, for instance, that the Germans would not honour the pact, or that the funds would be squandered on consumer goods with little impact on the growth of the economy. From the report issued by the Israel Purchasing Mission in West Germany, it is seen that Bonn fulfilled its undertakings to the last penny. The toil of Israelis and economic aid by world Jewry and from other sources have made the “miracle of Israel.” But there is little doubt that German reparations funds have also played their part in the economic recovery of the country. Travelling up and down • Israel, one finds some 1500 5 industrial enterprises equipi ped with machinery bought r with reparation funds. Some

of the 49 ships totalling 447,000 tons which were also bought with funds, can be seen any day in the port of Haifa.

Some people may regard it as an act of “historic justice” that the nation which committed the crimes against the Jewish people, should have helped to build up the rejuvenated Jewish state. Others may have preferred Israel to develop perhaps more slowly but without aid from this source. But the cold analysis of economic experts of the Bank of Israel, in a study on -the impact of German reparations on the economy of Israel, found that reparations helped the country to treble its gross national product, improved the level of production, and contributed to more rapid economic expansion.