"the Federal Republic had not recognised the State of Israel"

West Germany did not establish diplomatic relations with Israel until 1965.  Prior to this, a reparations agreement between the two countries had commenced in 1953 whereby the Federal Republic agreed (not without controversy) to pay compensation to Israel for the forced slave labour, persecution and seizure of property from Jews under the Third Reich.  Since the sixties, Germany and Israel have established a significant number of alliances in terms of trade, science, culture and the military.