Purely Commentary
Economic Difficulties in Israel
Like the earlier economic crisis in Great Britain, and not unlike
similar developments in other lands, Israel's problems are attracting
worldwide attention. A very small country that had been able to defy
many obstacles and in spite of the dangers from war-threatening neigh-
bors managed to create many industries, Israel for several years regis-
tered notable progress that was marked by the reaching of very high
standards of living. But in the past year there was a recession, for the
first time in the country's history more than 10 per cent of the popula-
tion are unemployed, and the emerg‘ng situation is menacing.
The New York Times took note of the new developments and com-
mented upon them in the following editorial:
Israeli rioters who recentlty protested rising unemployment by
stoning the Tel Aviv city hall were reflecting the political tensions
generated by the government's _deflationary policies.
A year ago, when the brakes were first applied, Finance Minister
Pinhas Sapir gave a blunt and accurate diagnosis of the situation.
"We have eaten and consumed more than we have produced," he de-
clared, "as if somebody else would foot the bill. Unfortunately there
is nobody else to pay for us."
Israel's standard of living has advanced rapidly since the foun-
ding of the state despite the heavy costs involved in resettling hun-
dreds of thousands of refugees and in maintaining a relatively large
military establishment. Its economic miracle was made possible large-
ly by heavy capital imports—from West German reparations and from
loans and contributions from Israel's friends abroad.
Once that flow began to diminish, as it did with the ending of the
reparations, the fact had to be faced that the country had been enjoy-
ing an artificial prosperity. So the Israeli Government acted to cut
consumption and imports, and to make Israel more competitive on
world markets. Inevitably, its pressures produced hardships, particu-
larly unemployment.
Fortunately, positive results are now being felt. Israel's balance-
of-payments deficit has been reduced, as exports last year paid for 65
per cent of imports, compared to 53 per cent in 1964. The recession
in the domestic market has put pressure on producers to increase
efficiency and cut costs, and to concentrate their efforts on export
sales. This process entails sacrifice and pain, but it is necessary medi-
cine for Israel's long-term economic health.
The friendly spirit evidenced in this analysis of the existing situa-
tion is an indication of the good wishes that go Israel's way from many
lands and certainly from this country. As this editorial indicates, the
experiences in Israel are a lesson for future planning, a medicine for
ills that are the result of trying conditions. The confidence in Israel's
leadership, the good wishes that go the Israelis' way, are heartening
also to Israel's kinsmen. American Jews won't let the little state down
and the current crisis—and it certainly must be viewed as an economic
crisis for Israel—should, as it must, encourage increased particilation
in all efforts in Israel's behalf, especially the UJA as a philanthropic
medium and Israel Bonds as an investment.
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The Purported Exaggerations
In the meantime Israel's Prime Minister Levi Eshkol has made
the claim that there are only 36,349 registered unemployed. While
the Israel government manpower planning authority placed the
number of jobless at 100,000. claiming that many without work had
not registered for jobs, the prime minister's statement proves encour-
aging. It was made in an earnest effort to encourage continued
immigration, thus indicating anew that Israel's open door policy
for all Jews who wish to settle there remains intact.
It is in Israel's favor that Prime Minister Eshkol adheres to a
policy of opposing currency devaluation. If he can enlist the coopera-
tion of all his countrymen in bolstering a spirit of confidence, Israel
will emerge quickly from the recession. She has done it before and
there is no reason for doubting the effectiveness of the people's
determination to overcome all obstacles, the internal as positively
as Israelis have with the external.
*
*
*
Senate's Honor for Arthur Vandenberg
It became the good fortune of Senator Robert P. Griffin to place
a plaque in honor of the late Senator Arthur H. Vandenberg in
the Vandenberg Room of the Senate Wing of the Capitol on Wednes-
day. A luncheon that was attended by many of the late Senator
Vandenberg's colleagues, his two daughters and newsmen who
covered his career, as well as foreign experts with whom he was
associated in his major role in our government, marked the unveiling
of the bronze memorial plaque which reads:
"This room is dedicated to Arthur H, Vandenberg, United
States Senator from Michigan, March 31, 1928, to April 18, 1951.
President Pro Tempore of the Senate January 4, 1947, to January
3, 1949."
Senator Vandenberg's name was linked with the history of
'
By Philip
SIOMOVitZ
University of California
to Open Hebrew U. Center
LOS ANGELES (JTA) — A
University of California Study
from him in the struggle for the advance- Center at the Hebrew University
ment of the cause of what was then aimed in Jerusalem has been approved
to be the Jewish National Home in Pales- by the U of C board of regents,
tine. We had scores of meetings with him. it was reported here.
Ile became vice-chairman of the American
Under the plan, according to
Christian Palestine Committee which had Dr. William Allaway, director of
been led by the late Senators Robert Taft the university's Education Abroad
and Robert Wagner. Ile joined us at program, 25 California University
several national functions in behalf of the students will attend the study
dreamed-of Jewish State—in the pre-Israel center in Jerusalem for their jun-
years—in Washington. Ile was our guest I ior year and then return to the
at a dinner at which the commentator was university here for their senior
accompanied by the late Mayor Edward year.
Jeffries and by Dr. Henry David, then
The program will be for II
president of Wayne University, as repre- months. The first 10 weeks will
sentatives of the Michigan chapter of the deal with language orientation.
American Christian Palestine Committee.
The Education Abroad program
He cooperated in behalf of the Zionist has 12 such study centers in over-
cause with the late Dr. Abba Hillel Silver seas schools.
and it was our privilege to introduce the
Dr. Joseph Kaplan, physicist and
Jewish leader to the Senator. Both con- president of the Southern Cali-
ferred thereafter on numerous occasions. fornia chapter of the American
Senator Vandenberg
Senator Vandenberg, like so many others—including many Jews Friends of the Hebrew University,
—became skeptical about the possibility of Jewish Statehood. At the cited the parallel interests of the
San Francisco sessions in behalf of the United Nations Organization two universities in farm and water
he was less cooperative: he seemed to share the spirit of hopelessness studies, stemming from the sim-
about the Jewish cause that predominated everywhere. He lived to ilarity of such problems in the
see the emergence of Israel as the Jewish State but he was too ill two countries.
by that time to share in the celebrations.
Prof. Kaplan, who is a mem-
The early stages of Senator Vandenberg's encouragement to ber of the Hebrew University
Zionism link him indelibly with the era of struggle on behalf of the board of governors, said that the
great Jewish cause. It is encouraging to know that the Michigan experience of living and studying
Senator who unveiled the plaque in his memory and many of the in Israel would help the American
late Senator's former associates are in Israel's corner in time of students to a "better understand-
crisis. This, too, is a tribute to the memory of the man now being ing of the social and political prob-
honored by the U. S. Senate.
lems of the Middle East."
Plan Small Parade
in Jerusalem, to
Meet Regulation
(Direct JTA Teletype wire
to The Jewish News)
TEL AVIV—A senior military
official said at headquarters here
Tuesday that the annual Independ-
ence Day parade will be held in
Jerusalem May 15 without tanks or
air force display and that it would
be the smallest parade in the his-
tory of these events.
,/ e official said that the parade
would be staged within the limits
of the Israeli-Jordanian armistice
agreement which bans heavy armor
in Jerusalem. The infantry column
will instead be strengthened by the
participation of several contingents
of paratroopers, girl soldiers and
police.
He said the parade would include
1,600 soldiers, 12 mortars, eight
anti-tank guns and eight field
pieces. Spectators will be compen-
sated for the modesty of the mili-
tary display with a night drummer
exhibition in the Jerusalem Univer-
sity stadium on the eve of the
parade.
■ 1114.11M1M.
Boris Smolar's
'Between You
. . and Me'
By BORIS SMOLAR
(Copyright, 1967, JTA, Inc.)
JEWISH MOODS: Leaders of a number of Jewish organizations
are discussing whether and how to establish a "Jewish presence"
in the work of aiding homeless war victims in South Vietnam . . .
American Protestant and Catholic voluntary agencies and the Quakers
are participating in such work in Vietnam by maintaining various
projects there . . . The question is, therefore, being raised now as
to whether the time has not come when American Jews, as Jews,
should also offer some kind of humanitarian service for the refugees
there . . . Some in Hadassah feel that over and above Hadassah work
in Israel, the organization could help the homeless people in Vietnam
through its experience in the field of providing much-needed medical
personnel and public health assistance ... Similarly, there is a feeling
that ORT could provide a team of instructors for vocational training
of refugees in camps . . . Some think that the Joint Distribution
Committee, with its enviable record of relief and rehabilitation work
among refugees, could be of help in the fields of child care and social
welfare in Vietnam ... Today, there are approximately 30 voluntary
agencies—with around 400 staff members from abroad—active in
Vietnam . . . Some maintain mobile medical teams equipped to make
short visits to isolated areas where, because of urgent priorities
elsewhere, medical assistance is almost completely lacking .
Others develop day care centers and feeding programs for school
children in refugee camps . . . Still others are conducting training
centers for war widows, teaching them dress-making and other voca-
tions through which they can become self-supporting . . . There are
Jewish Legion Jubilee
voluntary agencies which are concerned with the needs of war-
to Be Marked in Israel;
injured children, many of them orphans . . Many orphanages are
supported by the Catholic Relief Services, while American Friends
U.S. Veterans to Attend
BALTIMORE — Baltimore and Service Committee operates a day care center for children . . . Those
consider
Washington veterans of the Pales- among Jewish leaders who advocate Jewish participation,
is over, history should recall
tine Jewish Legion will gather it important that when the Vietnam war
Jews—like
other
religious
groups—made
their
contribution
April 9 to celebrate the departure that
of a number of delegates for a toward the alleviation of the sufferings of war-torn civilians.
pilgrimage to Israel to participate
WASHINGTON VIEWS: American officials, who only three
in the 50th jubilee celebration of months ago feared that there was real danger of war between Israel
the formation of the Jewish Bat- and Syria, involving other Arab countries, are now convinced that
talions during World War I.
war is not likely either now or even in the foreseeable future . . .
Baltimore and Washington were This view is found upon looking thoroughly into the Arab-Israel
the scene of active solicitation for situation and following an examination of the Arab and Moscow's
volunteers to join the British forces attitudes . . . An analysis of the latest developments shows that only
to wrest Palestine from Turkish the hot-headed Syrians and some of the Palestine Arab refugees
rule. Over 150 volunteers enlisted, would like to indulge in war against Israel ... However, the RussianS
and today about 30 veterans live and the Egyptians hold the Syrians back from most aggressive forms
in this area. They formed part of of behavior ... The Russians have done a lot to pull back from the
the Jewish Legion which numbered brink to which their military aid and political support drove the
10,000 soldiers from the United present Syrian pro-Communist government . . . At the same time,
States, Canada, Great Britain, the Syrian-Egyptian mutual defense pact of last November has helped
Palestine and other Jewish com- to keep the Syrians in bounds rather than to drag Egypt into new
munities.
military adventures against Israel . . . Although the Russians—who
After the armistice, many re- supply modern arms to Syrian all the time—have restrained the
mained in British Mandated Pal-
estine and some settled in a vil-
lage on the Mediterranean, Avi-
chail (My father the soldier).
When the state of Israel was
established in 1948, many vet-
erans were at the helm of the
government, including David
Ben-Gurion, the late President
Yitzhak Ben-Zvi, and the pres-
ent prime minister, Levi Eshkol.
The jubilee celebration in honor
of the Jewish Legion formation
will be featured during the observ-
ance of the 19th anniversary of the
THE DETROIT JEWISH NEWS state of IsraeL
American involvement in the Palestinian chapter of world affairs.
Ile lent his name to the Zionist cause in the early 1930s, when this
commentator first befriended him and received strong encouragement
2—Friday, April 7, 1967
I srael sEconomic Problem
and the'Silver Lining' . . .
Vandenberg and Zionist Aid
Syrians from actual open fighting, they have not been able to prevent
them from encouraging guerrilla attacks on Israel and from sabotage
within Israel territory . Soviet diplomats claim that their govern-
ment has done as much as it possibly could do in restraining Syria
. . . They admit that Syria is continuing to allow saboteurs into
Israel to mine roads, blow up water pipes and do other damage .. .
However, the opinion prevailing in Washington is that without
Nasser's encouragement, Syria will not provoke Israel, because Israel
is infinitely stronger than Syria . . . It is even expected in Washing-
ton that Nasser may freeze—or even dissolve—the Unified Arab
Command set up at the January 1964 Arab summit conference in Cairo
to fight Israel . . . This is because the rich Arab countries have
refused to contribute the funds they had pledged . . . What is more,
the joint project to divert the Jordan River headwaters in Syria and
Lebanon may also be abandoned because there are insufficient funds
to carry out this project.