Israel Dragged Into 'War of the Oranges'
r
r
p
Retaliation Against Euromart Act Considered
TEL AVIV (JTA ) —Isr a eli cir- of Histadrut, Israel's federation of
BY ELIAHU SALPETER
practice, it means that When bersome machinery of the Market cles hinted that Israel may take labor.
Chief JTA Correspondent in Israel Israeli oranges obtain, for exam- and Italy's valid insistence on the
M. Bolter, secretary-general of
"retaliatory action" against the
(Copyright, 1965, JTA, Inc.)
ple, $135 per ton in auction, the
JERUSALEM—Israel is in the Israel Citrus Market in Board has protection of its citrus growers, European Common Market for put- the coordinating committee of
midst of a "War of the Oranges" to pay the $20 per ton to the there is little chance for Israel or ting into effect the new "refer- trade unions in Common Market
countries, informed Becker that
with the European Common Mar- compensation fund. In other words, for the other outside countries ex-
ket and in the first round, so far, the net price obtained by the porting oranges to the Market to ence prices" on the import of the committee will meet to dis-
cuss the issue.
reverse the decision on the refer- oranges.
srael is the loser. But Jerusalem Israeli exporter is only $115.
ence prices. Some economists,
id not give up the hope of ulti-
The
new
formula,
enacted
by
the
What is left to the Israeli pro- though, argue that if Israel insti-
ate success and this issue will
Euromart against Israel's protest,
e, for the coming months, among ducer, after paying to the com- tuted punitive customs on imports may cut Israel's income from the
the main topics handled by Israeli pensation fund, is less than the from the Common Market coun- export of oranges to Common
diplomats in the six Market coun- cost price and the citrus growers tries ,this might make them more Market countries by as much as
tries—Italy, France, West Ger- association has already indicated amenable to Israel's call for a 25 per cent. The "reference prices"
many„ Belguim, Luxemburg, and that they will ask Government sub- change. Others, however, feel that were established at Italy's insist-
sidy for the losses. There is some a more practical matter is to open ence, to protect Italian citrus
The Netherlands.
The origins of the "War" go argument among economists in direct talks with the Italians and growers.
back to December 1964 when the Israel about the actual scope of figure out what the actual damage
Assurance that leaders of the
Market established practically free these losses. Citrus exports to Com- in dollars and cents would be if trade union movements in coun-
trade in agricultural commodities mon Market countries amount to the reference price system were tries belonging to the European
FREE DELIVERY!
among the six. Under this arrange- about 40 to 50 million dollars per abolished, and on this basis make Common Market will seek to alter
ment French wheat, which is year. Theoretically, the payments a triangular deal between Italy, the Euromart's decision was in MURRY KOBLIN • ADVERTISING
grown very efficiently, depressed would amount to 13 percent of the Israel and the other five members the meantime received here by
18039 Wyoming • UN 1-5600
the prices obtained for wheat by sales income, i.e. about five mil- of the Market.
Aharon Becker, secretary-general
lion
dollars
per
year.
The
orange
Italian farmers whose methods are
less • efficient and their prices, growers claim that it will be much
therefore, were higher on the do- higher because of the accumulat-
mestic market than the French ing effects, while some economists
prices. As a compensation, the say it will be less because slowly
Corner, Mile Rd. and Washburn
other Market countries agreed that the prices obtained at auctions
under a "reference price" whoever will increase.
Nevertheless, Israel is viewing
sells under this price will pay the
difference into a special fund to the matter with considerable
'A/D E -1 9.05 F
be used for the development of alarm and late in November sent
agriculture in the less efficient the Minister of Trade and Indus-
ed
N
farming areas of the six. The ref- try, Haim Zadok on a whirlwind
O ccopi
tour
of
the
capitals
of
the
Six.
erence price also affects fruits
vve
However, while he gained sym-
and vegetables—and it operates
se elVAe"
vis-a-vis the imports of such prod- pathetic ears everywhere, except
possibly
Italy,
because
of
internal
ucts. If, for example, Austria sells
potatoes to any Market country Market considerations the decision
below the reference price for pota- was not changed and the new ref-
toes, the difference has to be paid erence price will begin to hurt
into the same compensation fund. Israel as of January when Israeli
And this is where Israel's problem oranges begin arriving in signi-
ficant quantities in the Market
comes in.
Southern Italy has a small countries. Some exporters in Israel
citrus industry which provides believe that because of the cum-
about six percent of the total
citrus consumption of the Mar-
ket. This industry like most of
Italy's agriculture, is rather in-
efficient and Italian oranges cost
Italy to produce up to $175 per
ton. After long negotiations, the
reference price for oranges was
set at $155. Israeli oranges, on
the average, sell in the Market
countries for about $135 per ton,
thus requiring a payment to the
fund of an average of $20 per
ton.
If the sale of Israeli oranges
were based on a fixed price deal
with local importers, they would
have to pay the difference into the
fund and the effect would be a
price increase for the housewife
buying oranges in any Market
country (except Italy, of course).
In such case, the damage to
srael would be only in a poten-
'al loss of some sales because of
he higher prices from which
srael does not benefit. However,
33 1 /3 RPM Stereo or Hi-Fi Recording of
most of Israel's oranges are sold
A happy combinating of the New and• the
on a differe&,hasis: the importer
Old; Traditional and Modern. It is molded
is a local sl4 ,iary in that coun-
try of the Israel citrus market who
of Ivory Plastic, 121/2" high, 12" wide.
holds—like orange importers from
Each lamp burn independently. Equipped
other countries—daily auctions at
with and Exclusive Automatic On and Off
which fruit wholesalers bid for
the quantities offered. The result
Push Button. Complete with 9 Lamps. 2
is a double loss to Israel. First, as
Styles Available.
indicated, there is a potential de-
crease in sales because of the high-
The Hilarious New 33 1/3 RPM Recording
er price. But, more damaging is
Reg. $3 95
the fact that the difference has to
$7.95
be paid to the fund by Israel. In
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American and British fiction pub-
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