14

lh

Israel's Economy Affected by Crisis

commodities. The Minister lem residents gathered in His- alarmed" by Dulles' position on
warned of what he said was tadrut Square and adjacent Tiran. He called it a "new an'
the intention of the, U.S. to streets to hear Moshe Kol, mem- dangerous concession to* Cairo."
extend sanctions to Jewry's ber of the 'Jewish Agency
1.1
"Mr. Dulles' hint that the
executive and other officials United States • 'might join in
tacked the "Afro-Asian bloc" aid to.Israel.
(Continued from Page 1)
Despite these evidences of express the attitude of the Gov- United Nations sanctions agaifist
laration supported Israel's stand for voting. against Israel, Bri- increased economic difficulties, ernment and Israeli national Israel shows that we are exert-
that measures to prevent the-re- tain and 'ratice while they neither government members institutions.
ing the most reprehensible pres-
°
turn of the pre-fighting situation "time after time abstained from nor the ordinary citizens of Is-
•
Some 30,000 Haifa citizens sure against that country," Rep.
voting
on
several
resolutions
E-I should be simultaneous with Is-
relative to Soviet aggression rael have shown any tendency heard similar appeals for unity Celler stated.
rael's withdrawal.
•
He tented it "another monu-
in the nation's crisis from May-
Officials emphasized that Is- against people of Hungary.'' He to knuckle , under to demands
1 rael was • heartened. by wide- said "even now they are urg- that Israeli troops be ' with- or Abba Khushi. A mass- meet- mental blunder" and predicted
drawn from the Gaza and Aqa- ing in Ramleh, inhabited main- it would encourage "the Soviet
E4 spread world support and under- ing sanctions against Israel, ba areas without prior guaran- ly by newcomers, pledged simi- and Arab blocs to pressure for
I standing of her position in the which has at least partially tees of security and freedom of lar support to the government's economic
sanctions •against Is-
.
press and by leading political complied . with United Nations
•
policy. Several hundred set- rael" to force retreat from stra-
navigation.
The
man
in
the
resolutions
to
withdraw,
while
•
figures.
r-I
they remdin silent on Soviet street feels that if Israel sur- tlers from 14 Israeli settle- tegic positions so Egypt can rte:.
new its blockade.
refusal to pay the slightest at- renders iiow to an Arab pres- ments alon• the ,Gaza Strip
Vi‘
State Dept. Presses
border
demonstrated
at
Nachal
sured
Unit4d
Nations,
it
Will
tention to Hungarian resolu-
set a precedent which will Oz settlement, which was un- Protest Sanctions
Israel for Answer
tions."
Threats of sanctions against
He asked: "is the United Na- shortly threaten Israel's 'very der constant attack by Egyp-
WASHINGTON The State
•
tian "fedayeen before the Sinai Israel brought worldwide pro-
Po Department Tuesday pressed tions to condone a doctrine of existence.
The people of Israel assem- action: The rally opposed the tests during the past week. In
tsi Israel for an immediate answer `might makes right'; are pro-
to its proposals on • the Tiran cesses of the United. Nations to bled in huge mass meetings to return of "Egyptian murders to spite of the statements by Sec-
retary -of • State Dulles and
be applicable to free nations pledge their support of their our doorstep."
Straits and the Gaza Strip.
•
(President Eisenhower was re- President Eisenhower that they
Well-informed Congressional and not to -dictatorships, to government's refusal to yield to
`11
sources portrayed the proposals small and not to large, to Israel United Nations and- United ported to have sent a message would support actions taken by...
•
advanced Monday by Secretary because Gaza is not evacuated States pressure to compel im- to Egypt's President NasSer the United Nations, newspapers
•
of State Dulles as a "face sav- but not to India or the USSR mediate and unconditional with- asking h'im to renounce the in major cities, radio commen-
ing formula" by which Israel , because Kashmir and Hungary drawal from the Gaza and Aqa- claim of a "right to belliger- tators, members of Congress and
ba areas under threat of sanc- ence." American sources indi- leaders in all walks of life pro-
would seem to get some "guar- are not evacuated . . ."
tions. Hundreds of thousands of catecr clearly they would wel- tested against such plans.
antees" in exchange for with-
Israelis met in Tel Aviv, Jeru- come spread of the report
Israel stood firm on her re:-
drawal. The United States
salem, Haifa and smaller cities about Mr. Eisenhower's mes- fusal to budge from disputed
would benefit by avoiding the
in a. national act of protest sage to. Col. Nasser.)
uncomfortable prospect of a
. areas until she reeeives defi-
against the tremendous squeeze
nite guarantees that there
showdown on United Nations
JERUSALEM, (JTA) — The on Israel.
will be _no further attacks-_
Legislators' Protests
sanctions. Legislators of both
A _proclamation issued by
iipon her by Egypt and until
parties Tuesday displayed new Israel Association for the
WASHINGTON,
(
J
T
A
)*
—
evidence of a predominant United Nations cabled United the Israeli Chief Rabbinate 'President Eisenhower, • who is there is an assurance of free
passage for her ships through -
Congressional trend against Nations Secretary General Dag expressed regret that the on a hunting vacation in Geor-
Hammarskjold asking him why United Nations, "whose prime gia, • conferred by telephone Aqaba. In fact, there was a
such anti-Israel sanctions.
Gaza "assurances" propos- 1 he had not yet inquired of the duty is to promote world with Secretary of State John renewal of demands for free
peace and foster cooperation
ed, by Dulles were considered Egyptian government whether
Foster Dulles on developments passage through the Suez.
so obscure by Congressional it is willing to cease hostile among the nations" was yield- concerning the U. S. demand
Israelis demonstrated- dur-
ing
to
the
pressure
of
Isra-
friends of Israel that it was acts against Israel. The cable
that Israel withdraw its troops ing-the week-end and pledged
el's
enemies.
The
proclama-
thought the whole undertak- ' stressed that the current situa-
themselves to support the
unconditionally.
ing might boil down to a re- tion presents a unique oppor- tion, signed by Chief Rabbis
Secretary Dulles conferred at Ben-Gurion government even
Isaac
Halevi
Herzog
and
Is-
tunity
to
end
hostilities
by
both
turn of Egyptian control to
aac Nissim, called • on Israel's his home this week with'.Rob- 'if there should be sanctions.
the strip while the old UN sides in the Israel-Egyptian dis-
--
people for solidarity and ert D. Murphy, Deputy Under It was evident_ that the Ben
truce supervisory force of pute.
Gurion government might
Secretary
of
State.
Earlier,
Mr.
unity
in
the
faith
that
Isra-
i-
The fear of possible eco
Gen. -E. L. M. Burns 'was I
even lose the support of its
el's cause was just and that Murphy met with Israel Am-
nomic sanctions imposed from
merely increased in numeri-
own party in the event that
bassador
Abba
Eban
but
the
victory was therefore certain.
cal strength: It was feared I abroad, coupled with the
he should yield to the new
deadlock continued.
It
was
the
first
time
in
the
plans
of
the
ISrael
govern-
that the Burns group might
pressures.•
congressional
opinion,
Re-
nine-year
history
of
Israel
that
ment
to
decrease
non-essen-
again fail to prevent feda-
tial imports, is now begin- mass meetings on such a scale publican as well as Democratic, . In London, Foreign Secretary
yeen raids, while in effect
ning to build up an infla- have been held. The rallies moved increasingly toward op- Selwyn Lloyd told Commons
shielding the strip from any
tionary tendency in the coon- were organized jointly by all position to , sanctions. against Is- that Britain would oppose any
effective counter-measures.
attempt by the UN ' to impose
try. An increase of some five coalition parties, except Herut, rael.
State Department "assur-
sanctions on Israel. Britain and
with
the
General
Zionists,
who
percent
was
registered
in
the
Rep.
Hugh
Scott
(Pa.,
R.)',
ances" on the Tiran Straits
Canada endorsed the Dulles
are
not
in
the
coalition,
partici-
foreign
currency
and
.
gold
leader
of
a
group
of
41'
House
were considered so vague
blackmarket. Stocks on the pating. The right wing Herut Republicans which has opposed proposals on Tuesday.
that they differ little from
Similar criticism came from
Tel Aviv exchange linked to party demanded a more ex- "onesided" United Nations ac-
previous similar U.S. expres-
dollars have also risen, as treme position for participation tion against Israel stated that many of America's allies, a typ-
sions on maritime rights "ig-
than the coalition parties would it would be "shocking and mor- ical reaction being that of the
has the cost of such raw ma-
nored by Egypt.
.
accept. Only the tiny Commun- ally indefensible" for the Unit- Times of London; which usually
terials
as
cotton
and
textile
U. S. sources admitted that
ist
party abstained from sup- ed States to be a party to any expresses governmental atti-
yarns.
the only action , the United
Actually there is no shortage port of Israel's stand on with- UN move to impose sanctions tudes.
States would be likely to take
The Times condemned the
if the Egyptian blockade were of foodstuffs, except in sugar drawal- and the man on the on Israel "because this coun-
arguments of President Eisen-
restored would be to look for which is now very expensive. street did not fail to remember try is small enough to be shoe
a solution to the UN which has Nonetheless, the monthly dis- that, as in the Sinai campaign, ed around." hower and Mr. Dulles that
already shown an inability to tribution of rationed sugar, fats the Communists were the only
Sen. Alexander 'Wiley, of Israel should not ignore its
protect Israel's basic rights in and flour is proceeding in _or- supporters of the UN position. Wisconsin_, ranking Republican democratic obligations to
•
At each rally resolutions on the Senate Foreign Rela- heed the opinions of the
derly fashion at last month's
this issue.
The State Department is des- fixed prices. In the free mar- were enddrsed "indignantly pro- tions Committee, said he did world by refusing to pull out
perately pressing for Israel ap- ket, 'slightly higher prices pre- testing" the UN attempt to not believe proposed UN sanc- its last Sinai-stationed troops.
"Is the United Nations to
proval and quick withdrawal vail on essential commodities. "strike a blow at Israel's se- tions against Israel would be
of Israel forces. It is hinted Meat from East Africa contin- curity and equality" and ex- "either a fair, justified, or an Press those 'decent' countries
meanwhile that unless Israel ues to flow • into ' the country, pressing full support of the Is- effective answer" to the pres- which are more likely to give
way in the end, while allow-
accepts these "generous" pro- assuring sufficient reserves. End rael government's effort to ent deadlock.
Republican Senators Irving ing free rein to stubborn.gov-
posals, the United States would, of season sales in clothing kept combat' attempts -to "use the
ernments such as Egypt or
have no recourse but to sup- ' prices on these items in line United Nations to revive ten- M. Ives and Jacob K. Javits,
' and many .Israelis took the op- sions and hostilities on the of New York, joined in a let- the Soviet Government which
port sanctions.
Israel, however, intends to portunity to buy needed articles. Egyptian-Israel border. Call- ter to Secretary of State Dulles is still in defiance of UN reso-
The Mapai Party economic ing on all nations to assist Is- urging that "our government lutions -on Hungary?" the
study these proposals carefully,
s Times asked.
and to seek' more concrete de- committee, after hearing a re- rael, the demonstrators declar- should not back'ks an c t
The Turkish press is largely
tails while continuing to ex- port from Finance Minister ed . "neither political nor eco- against Israel so long as Egypt
plain requirement for tangible Levi Eshkol • on his proposed nomic pressure nor the threat remains in default' and defiance in agreement with Israel's in-
emergency economic plan de- of sanctions will break our of United Nations resolutions." .sistence on linking withdrawal
and effective guarantees.
signed to tighten Israel's belt spirit or deterMination. United The two Senators said it would to international security guar-
in the event of formal sanc- we will endure any sacrifice re-: be a "serious error" to support ant ees. The pro-government
Knowland Proposes
tions,. named a special corn- quired in the defense of our any - UN sanctions against Isra- "Havadis" assailed as an "in-
Demilitarized Zone'
mittee to draft an enforced homeland and for the preserva- el. They said an argument on justice" Eisenhower Adminis-
Senate Republican Leader wage savings plan, designed as tion of the United Nations prin sanctions advanced by Senate tration attempts to force Israel
William F. Knowland, of Cali- a substitute for Mr. Eshkol's ciples of equality and sov- Republican Leader William 'T. to make concessions and sacri
fornia, has recommended sepa- suggestion that the present ereignty of all nations."
Knowland "certainly has con- fices without requiring anything
An estimated 100,000 Tel siderable logic."
ration between Israel and Egypt high cost of living be frozen.
from Egypt. The opposition
comparable to the demilitarized Other suggestions by Mr. Esh- Aviv citizens, one-fourth of
Replying' to the 76 Democratic newspaper "Dunya" said Israel
zone separating the Republic of kol include: a cut in the civil the city's population, massed Congressmen, Secretary Dulles "asks only the right to breathe
Korea • from Communist North- service payroll by the- dismis-. into the mile-leng Allenby said that "the important thing at freely." •
ern Korea. Speaking at George- sal of at least 2,000 persons; Road and - marched to the the present is to take measures
In , Venice, Pietro Nerini, Ital.:-
' town University Monday night, a special tax to be used to com- .seashore where Mayor Haim to insure that developments in ian Socialist party leader, told
Sen. Knowland said -Israel had bat increasing unemployment; Levanon and members of the this area cld not lead to the re- the opening session of the
an "ultimate responsibility" to a cut in government subsidies Knesset addressed them. They sumption of hostilities."
party's 32nd Congress that the
return to the 1949 armistice for 'essential commodities, and displayed banners and post-
Secretary Dulles' statement threat of war would continue
ers in Hebrew,. French and was immediately and severely to exist until necessary guaran-.
lines but that he thought that a slash in imports.
English opposing withdrawal criticized by chairman Emanuel tees were obtained for freedom
In view of the fact that the
until a permanent settlement is
and the. "Hammarskjold-Nas- Celler of the House Judiciary of navigation in the Suez Canal
achieved United Nations forces United States has to all prac-
ser partnership," a refe,rence Committee. Rep. Celler said it and the problem of Israel's bor-
should _occupy Aqaba, block- tical purposes already im-
to UN Secretary General Dag was now likely Egypt would re- ders solved with similar guaran-
ade the coast of Gaza Strip and posed economic -sanctions on
Hammarskjold and Egyptian sume its blockade of the Tiran tees of security. -
Israel, Minister of Trade and.
create a demilitarized zone sep
Premier Nasser. Other ban- Strait if Israel withdraws be-
, arating Israel and Egyptian Industry Pinellas Saphir call-
Spokesmen of both major Ca-
ners hailed French aid to Is- cause -Egypt is now provided nadian political parties backed
-ed for- manufacturers and ex-,
Territory. -
rael. No incidents were re- justification in the form of Israel's position on the Gaza
Sen. Knowland urged that porters to increase produc-
the United States vote against tivity and exports and com- ported anywhere though Dulles' "free legal advice" to and Aqaba areas during a de ,-
strong police guards. were Egyptian President Nasser that bate in the Canadian• Senate on
UN anti-Israel sanctions if they plete a scheduled four-year
placed near a number of for- the ,status of the strait be judged a loan of $1 million to the UN
are proposed. He said he hoped export plan in two years. He
eign missions including the by the International Court of for clearing the Suez Canal.
the United States would not noted that the U. S. has halt-
American delegation.
Justice. •
,favor sanctions and would not ed all grants-in-aid and • the
An estimated 20,000 Jerusa-
Celler stated he was "greatly (Other 'stories on Pages 3, 23, 2I14
surplus
- abstain. -from voting. • He at- below cost sale

z

Si. Pressure . on Israel Mixed
ith Favorably Gr ()Wing Assistance

How Situation
Affects Economy

,

.

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of

