Amidst the cross currents of events that influenced the power centers of the world in the first half of the twentieth century, the State of Israel was born in the year 1948. The new nation was denied the privilege of trading with its Middle East neighbors but succeeded in gaining succor from distant friends, one of which was the United States of America. This treatise is concerned with the motives prompting the U.S. government economic aid to the fledging Mediterranean power, with the nature and magnitude of aid extended, and with Israel's utilization of that aid. The period under review is 1949 to 1960, although the limits suggested by these dates will be lifted as often as the need arises.