REPORTED DECISION BY U.S.A. TO GRANT ISRAEL A LOAN

Wanganui Chronicle, 27 May 1948, Page 5

REPORTED DECISION BY U.S.A. TO GRANT ISRAEL A LOAN

(N.Z.P. A.—Reuter—Copyright) Washington, May 25. Dr. Chaim Waizmann, President of Israel's provisional Government, disclosed today that President Truman had tentatively approved of a loan of between 90,000,000 and 100,000,000 dollars to IsraelDr. Weizmann. who conferred with Mr. Truman this morning, said later: “Mr. Truman gave me hope that the United States would lift its arms embargo in the not over-distant future. When I mentioned a loan, Mr. Truman remarked. “There would be no trouble about that because 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 of military tackle.” Dr. Weizmann said the loan would

also be used to start general reconstruction work, to aid the immigration from Europe of 15,000 displaced persons monthly, and to build houses. Formal American recognition of Israel and exchange of diplomatic missions would follow later“It is almost incredible that Jerusalehi should be invaded by Arab hordes under Christian leadership,” he declared, in direct criticism of the British, who “have undone the work originally done by Richard Coeur de Lion.” Dr. Weizmann said that Israel’s forces were prepared to leave Jaffa and Acre as soon as hostilities ceased, but 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 an official guest of the United States Government. A tiny Israel flag fluttered from nearly every lamp post in Washington today in honour of his visit.