UN Palestine Commission – Loans from Bearer Bond Balances – Letter from United Kingdom

26 April 1948

UNITED NATIONS PALESTINE COMMISSION

Communication Received from United Kingdom

Delegation Concerning Loans from Bearer

 Bond Balances

The following Communication, concerning loans to Tel Aviv and Haifa Municipalities from Bearer Band balances, has been received from Mr. Fletcher-Cooke of the United Kingdom Delegation.

DELEGATION TO THE UNITED NATIONS

Empire State Building

New York 1, N.Y.

My dear Bunche,

May I refer to my confidential letter of the 20th March and to your reply of the 22nd April concerning loans to the Tel Aviv and Haifa Municipalities from Bearer Bond balances.

2. With reference to paragraph 4 of my letter of the 20th March, I should explain that the loan to the Tel Aviv Municipality, for which approval was given in principle as long ago as January 1947, amounted to £P518,000. As explained in my letter referred to above, the Tel Aviv Municipality originally applied to the Government of Palestine for a loan of £P353,387 which, (together with funds from other sources), would enable them to acquire the Sarona Lands. The Tel Aviv Municipality have now applied to the Government of Palestine for the remaining balance of the loan as originally approved in principle, namely £P164,613, to completing the financing of the acquisition of the Sarona Lands and His Majesty’s Government have authorised the Government of Palestine to pay over this balance to the Tel Aviv Municipality.

3. The reasons for the release to the Tel Aviv Municipality of this balance of £P164,613 are the same as those set out in may letter referred to above.

4. In conclusion, I must point out that the release of this balance finally liquidates all loan commitments to the Tel Aviv Municipality.

Yours sincerely,

s/ (J. Fletcher-Cooke)

Dr. Ralph J. Bunche,

Principal Secretary to the United Nations

Commission on Palestine,

United Nations, Lake Success.