Israel Hopeful of American Loan

Otago Daily Times, Issue 26782, 27 May 1948, Page 5

Israel Hopeful of American Loan

WASHINGTON, May 25. Dr Chaim Weizmann, president of Israel’s Provisional Government, disclosed to-day that President Truman had tentatively approved of a loan of between 90,000,000 and 100,000,000 dollars to Israel. Dr Weizmann, who conferred with the President this morning, said later: “ President Truman gave me hope that the United States would lift its arms embargo in the not over-distant future. When I mentioned the loan President Truman remarked: ‘There would be no trouble about that because the Jews always pay their debts.’ The loan is quite small by American standards, but it would represent a considerable chunk of money to Israel.” When asked whether the loan would be used for military purposes, Dr Weizmann replied: “We will have to have a few planes, tanks, and antitank guns We need a great deal pf military tackle.” Dr Weizmann said the loan would also be used to start general reconstruction work, to aid immigration from Europe of 15,000 displaced persons a month, and to build houses. The formal American recognition of Israel and the exchange of dinlomatic missions would follow * a *‘ e it is almost incredible that Jerusalem should be invaded by Arab hordes under Christian leadership, he declared in indirect criticism of the British, who “have undone the work originally done by Richard Coeur de L Dr' Weizmann said Israel’s forces were prepared to leave Jaffa and Acre as soon as hostilities ceased, but he

stressed that the Jews still thought Jerusalem should be given to them, although under the partition plan it was to be international. Dr Weizmann is staying here as the

official guest of the United States Government. A tiny Israel flag fluttered from nearly every lamp post in Washington to-day in honour of his visit.