Recession Threatening Israel Seen by Washington Writer
WASHINGTON (JTA)—A Wash- building trades.
Addressing a meeting in Bat
ington Post financial writer, Hobart
Rowan, in a report from Israel Yam near Tel Aviv, Finance
after a survey of economic develop- Minister Pinhas Sapir said that
ments there, said Monday in a dis- some 1,500 engineers would soon
patch to the Post that "Israel is be employed by the government in
threatened with a full-fledged re- such projects as building roads and
cession." bridges, as well as a number of
He described the Israel govern- public structures.
The engineering profession has
ment's efforts to restrain inflation-
ary tendencies, and contrasted the been particularly hard hit by the
far greater rise of industrial wages crisis. Zadok told a meeting in
than productiVity gains. He cited Herzliya that despite retrench-
worries that unemployment in ment, a number of industries were
Israel would grow. actually expanding. He cited the
Rowan said that "investments clothing and diamond industries.
in residential construction and in
SEEK LOWER PRICES
some major public works projects In Jerusalem, Finance Minister
like the building of a vast new port Pinhas Sapir told a press confer-
at Ashdod have been slowed down. ence Wednesday that more than
This has diminished total buying 20,000,000 pounds ($6,600,000) has
power among Israeli citizens, and been saved by government person-
the effects have been quickly felt." nel reductions and other economies
in the first phase of the govern-
He reported that Israeli labor
ment's retrenchment program, a
was trying to persuade the gov-
major phase of Israel's current ails-
ernment to do something about
terity effort.
rising prices, and said "one hears
He said 15,000,000 pounds ($5,-
hints of sonic sort of price con-
000,000) had been saved by cancel-
trol action, but not until next
ing 1,4 unfilled jobs and that more
year."
The writer said: "The over- than 2,000,000 pounds ( $650,000)
whelming dilemma is a balance of had been saved by cutting overtime
payment deficit that runs to about and traveling allowances. He ex-
half a billion dollars a year, and pressed the hope that concurrent
which threatens to hit the seven with such efforts, productivity
to eight hundred million range by would increase in the coming years.
Sources in the Histadrut, Isra-
the 1970's." He noted that about
el's labor federation, said that
half the current deficit was at-
the federation would oppose any
tributable to Israeli defense needs
government attempt to cancel a
because of the arms race.
promised 5 per cent salary in-
Rowan said that "if Israel is to
erease in 1967. The Histadrut
make any progress toward internal
also plans to press for payment
economic stability, she will have
of the cost-of-living allowance
to undergo a major period of
increases for next year for low-
auSterity—cut consumption at home
er income groups.
and boost her exports to the rest
Such increases have been gen-
of the world."
• He questioned whether a govern- erally canceled during the current
ment could force a deflation and wage and price freeze.
Meanwhile. Histadrut officials
stay in office. pointing out that this
was a "real consideration" in Is- conferred with treasury officials
rael as in other countries facing in the hope of bringing about can-
cellation of price increases in such
similar problems.
Rowan noted, however, that basic commodities as milk, eggs
"even after a brief visit to this and fats. Trade union leaders said
remarkable country, the chief an- such increases will lower still
swers to its economic problems lie further worker living standards hit
in its own strength and not in help by wage freezes.
In Israel's deepening economic
from the outside."
He said that "recession is only squeeze, officials looked to some
a relative thing. The downturn is agreement with the six-nation Euro-
from a high level of prosperity that pean Common Market which would
brought per capita income to more give a boost to Israel's exports to
than $1,000. This equals the stand- that market, and help to relieve
ard of living of many European Israel's unfavorable balance of in-
ternational trade, which is hurting-
countries."
Israel's economy. Israel's current
UNEMPLOYMENT AID AIRED
In Jerusalem, sharp differences
here Sunday night developed with-
in the Mapai-Ahdut Avoda align-
ment over a proposal to establish
NAZERAT ILLIT (Upper Naz-
an unemployment insurance pro- areth), Israel — A comprehensive
gram which would guarantee a high school established by the
minimum means of subsistence to Israel Education Fund of the
the growing numbers of unem- United Jewish Appeal and con-
ployed resulting from the govern- sidered vital to the development
ment's austerity program.
of this immigrant development
David Horowitz, governor of the town and of the Galilee was named
Bank of Israel, who presented the here in honor of the late Moshe
unemployment insurance proposal Sharett, former
at a meeting of the alignment's Prime Minister of
economic committee, said that, Israel who died
while it vas impossible to supply last year while
enough work, insurance should be serving as Chair-
instituted.
man of the Jew-
Opposition to the plan was ex- ish Agency.
pressed at the meeting by a num-
Leaders and
ber of leaders of both the Mapai members of the
and Ahdut Avoda factions, who 12th annual UJA
argued that the funds which would Study Mission
be used in such a program should joined four of the
go instead toward the creation of seven school don-
productive work opportunities.
ors, as well as
They also charged that unem- government
ployment insurance would lower municipal-
labor standards. Commerce and ity, Jewish Agen-
industry Minister Haim Zadok cy and Ministry
claimed that such a scheme would of Education offi-
be detrimental to the interests of cials, in witness- Sharett
the state.
ing the simple, moving ceremony
The newly appointed Employ- creating the Moshe Sharett School
ment Headquarters, meanwhile, on a hilltop above the storied Arab
held its first session Monday village of Nazareth.
morning with the participation
The UJA Study Mission was
of Labor Minister Yigal Alton
headed by General Chairman Max
and Zadok. The headquarters is
M. Fisher and Executive Vice-
charged with drawing up plans Chairman Herbert A. Friedman.
for the creation of new jobs par- Ralph I. Goldman, executive di-
ticularly in development areas.
rector, represented the Israel Edu-
In a number of different public cation Fund.
gatherings held over the weekend,
Baruch Asgad, director of the
various alignment ministers sought Municipal Education Department
to explain the government's re- of Nazerat Illit, described an al-
trenchment policy, claiming that most desperate education problem
the slowdown has hit only the which the Sharett School will re-
limited agreement with Euromart
ends next July 1, and Israel has
applied for both a much more lib-
eral pact and for associate Euro-
mart status.
Informed sources in Jerusalem
Wednesday said it was doubtful
that the council of ministers, the
supreme body of the European
Economic Community, would do
more Thursday than note Isra-
el's request for associate mem-
bership in the European Common
Market, when the matter is dis-
cussed at a council meeting.
The sources said that all six
member-governments of Euromart
are in agreement that the present
limited Israel-EEC agreement, is
not eilling Israel's needs.
Nevertheless, they feel, high-
level political action will be needed
to ensure success of Israel's bid
for associate membership. Such ac-
tion will come next spring when
Premier Levi Eshkol will visit
Europe and meet with President
de Gaulle of France and Chan-
cellor Ludwig Erhard of West Ger-
many.
West Germany's position on Is-
rael's request was reviewed again
at a meeting between Foreign Min-
ister Abba Eban and Dr. Rolf Pauls,
West Germany's ambassador to Is-
rael. It was believed that Dr. Pauls
reiterated West Germany's sym-
pathetic attitude on the issue.
Foreign Minister Abba Eban told
the Cabinet Sunday that both Italy
and France accept Israel's view
that its present agreement with the
European Common Market is un-
satisfactory.
The foreign minister reported on
talks he held last week with gov-
ernment officials in Paris and
Rome. He warned. however, that
negotiations on Israel's request
for associate status in Euromart
may be long and difficult.
All of Israel's institutes of
higher learning, particularly the
Hebrew University of Jerusalem
and Technion, the Institute of
Technology at Haifa, were re-
ported Monday to be hard hit by
Israel's economic retrenchment
program, leading to abandon-
ment of expansion plans.
Elihu Elath, Hebrew University
president, has announced that the
university had decided to limit an
increase in its student body to a
maximum of 10 per cent because
of a shortage of funds and facili-
ties. He reported that the financial
pinch was putting a serious brake
on the university's development.
He said also that the country's
austerity program was causing
financial problems for students as
well.
NO JOBS FOR GRADUATES
Technion's president Alexander
Goldberg said that school had sus-
pended plans for a new building
and other expansion moves. How-
ever, he said, the principal con-
cern was the problem of grad-
uates in finding jobs. He disclosed
that most of last year's candidates
had not yet found jobs and that,
if this situation continued, many
would probably emigrate.
In a related development, a
delegation of the National Union
of Students Monday rejected a
suggestion by Premier Levi Eshkol
that tuition fees be doubled from
$200 to $400 annually. At a meet-
ing with the premier, the student
leaders asked that tuition fees be
linked to the cost-of-living index.
Most of a long session of the
Cabinet Sunday, which lasted into
the evening hours, was devoted to
a discussion of the tuition fees
problem. A committee appointed
by the government to study and
bring in recommendations on the
issue split four to four. The discus-
sion will be resumed at the next
Cabinet session.
THE DETROIT JEWISH NEWS
46—Friday, October 28, 1966
Hare Resigns From Post
in State Dept. to Head
Middle East Institute
WELLINGTON, New Zealand
(JTA)—President Johnson has ac-
cepted the resignation of Raymond
A. Hare, assistant secretary of state
for Near Eastern • affairs, so that
Hare may assume the presidency
of the Middle East Institute. Hare
succeeds Kermit Roosevelt as pres-
ident of the institute.
Roosevelt has been identified
with anti-Israel and pro-Arab
causes although the institute offi-
cially avoids partisanship on the
Israel-Arab issues. One of its
founders, Edwin M. Wright, a for-
mer State Department official,
openly espoused hostility toward
Israel and advocacy of the Arab
position.
President Johnson wrote Hare
that "as President of the Middle
East institute, you will be carry-
ing on important work in a vita/
area. We can all benefit from it."
During his State Department ca-
reer, Hare served as U.S. ambas-
sador to Saudi Arabia, Lebanon,
assistant secretary for Near East-
ern affairs in July 1965.
Liberty ! Liberty ! how many
crimes are committeed in thy
name.—Madame Roland.
•
School to Honor M. Sharett's Memory
lieve. At present, 210 students are
squeezed into overcrowded, inade-
quate facilities, including small
converted apartments and elemen-
tary school corridors and service
rooms. Another 200 students are
forced to attend high schools in
other towns. The extent of future
demand for high school facilities
is indicated by the enrollment of
2,000 children in Nazerat Illit's
four elementary schools and 500 in
16 kindergartens.
The Israel Education Fund is a
program of the United Jewish Ap-
peal initiated in September 1964
to meet acute building, personnel
and equipment shortages in Israel's
system of secondary education,
particularly in the country's immi-
grant development towns. It seeks
funds for the construction of high
schools, libraries, youth centers
and pre-kindergarten schools. and
for the establishment of scholar-
ships for students and teachers in
training. All schools, facilities and
scholarships created by contribu-
tions to the IEF are owned,
operated and administered by the
United Israel Appeal, Inc., an
American corporation.
Authority
Man, proud man!
Drest in a little brief authority,
Most ignorant of what he's most
assur'd,
His glassy essence, like an angry
ape,
Plays such fantastic tricks before
high heaven
As make the angels weep.
—Shakespeare.
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