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August 20, 1971 - Image 14

Resource type:
The Detroit Jewish News, 1971-08-20

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Effect of Nixon Policy on Israel in State of Uncertainty

(Continued from Page 1)
and an expert on international
fiscal policies, both said that the
Israeli pound should have been
devalued long ago. In concert
with expert opinion elsewhere,
the two scholars called Nixon's
measures a de facto devalua-
tion of the dollar. This time, they
said, Israel should not react only
by adjustment to the new dollar
gold rate but instead should
"take the opportunity for coura-
geous and decisive action" by
devaluation, which would have
at least a temporary effect of
loweing Israel's prices on ex-
lowering Israel's prices on ex-
ports of other countries.
They cited, as an example of
merely adjusting, Israel's act of
devaluating of the pound three
years ago to its present three-and-
a-half to the dollar when it fol-
lowed the pound sterling and other
European currencies in a 12 per
cent devaluation. The two experts
also urged imposition of wage and
price controls, linked to the pro-
posed devaluation, so that the
value of the devaluation would not
be lost.
Most observers here, however,
expressed doubts that the govern-
ment would follow the advice of
the two experts.
Finance Minister Pinhas Sapir,
a strong foe of devaluation, is
on record as believing that in an
economy in which unions and
trade groups are as strong as
they are in Israel, devaluation
would be quickly nullified in ef-
fect by wage and price inflation.
But other experts pointed out
that Israel's money ni anagers
plan to keep the pound steady
relative to the dollar, which
means that the Israeli pound will
in fact be devalued in relation
to the West German mark and
other strong or gold-based cur-
Strong objection to the devalua-
tion idea was registered today by
Marc Moshevitz, president of the
Israel Manufacturers Association.
He said devaluation would cause
unemployment and make import
goods far more expensive, perhaps
producing a crisis mood which
would be inimical to a country like
Israel which is eager to attract in-
Moshevitz suggested, instead,
such fiscal measures as selective

import taxation, export incentives
and higher purchase taxes.
For two days, trade in foreign
currency, other than in dollars, was
In an examination of the impact
of one specific trade measures in
the new Nixon program—the im-
position of a 10 per cent import
surcharge—the experts indicated
they expected little harm to Is-
rael's economy. Israel's sales to
the American market constitute 20
per cent of its total annual ex-
ports. Diamonds, Israel's number
one export item, may be affected
by the surcharge. Other Israeli ex-
ports to the United States include
such specialty items as wines,
bathing suits, fashions and textiles.
All of these, the authorities said,
are purchased by Americans be-
cause of their origin or design and
are considered quality items.
Short of a severe recession in the
United States, Americans were ex-
pected to continue buying such
Israeli specialty items even if they
do cost more. A large part of the
other 80 per cent of Israel's ex-
ports go to countries with strong
currencies. If the Israeli pound
continues to be pegged to the dol-
lar, the exports will be compara-
tively cheaper to buy in those
countries. On the other side of the
trade picture, a weakening of the
dollar should not affect Israel's
ability to buy products in other
countries because much of Israel's
foreign currency reserves is in
West German marks, one of the
strongest free world currencies.
However, the experts said, the cut-
ting of United States foreign aid
announced by Nixon may affect
some of the grants and loans Is-
rael has been expecting. But the
way in which the foreign aid pro-
gram will be cut has not yet been
made clear and its impact on Is-
rael accordingly cannot be meas-
Moshe Rivlin, executive direc-
tor of the Jewish Agency in Jeru-
salem, told the JTA that he did
not expect the new U. S. policy
to bring a decrease in income from
overseas contributors. He said that
experience over the past years had
proved that economic crises do
not damage the commitment of
the Jewish people to Israel's cause.
Officials in the finance ministry

declined comment, pending careful
study of Nixon's new policy.
View From U. S.: Nixon's
Economic Policy Not Likely
To Affect Israel Over-All
mic experts, both here and in New
York, said it was too early to
judge the impact on Israeli im-
ports of President Nixon's an-
nouncement that the United States
would, among other things, intro-
duce a 10 per cent surcharge on
most imports. The Israel Govern-
ment Investment Authority and
Bank Leumi Le-Yisrael were
among those declining comment.
However, a canvas by the JTA
of official American sources here
disclosed that the over-all effect
on Israeli-American economic re-
lations is not likely to be great.
Israel's exports to the U. S. in
1970 totaled $149,600,000, with dia-
monds leading the list at $70,000,-
000. This year the rate has been
somewhat higher—$87,000,000 in
the first six months. (In 1969 it was
The imports from Israel do not
seem to be among the exemptions
indicated by Treasury Secretary
John B. Connally. Therefore, the
tariff charge under the new sur-
charge would amount to $15,000,-
000, based on last year's trade
(Exports from the U.S. to Is-
rael last year totaled $593,000,000,
and were largely machinery and
transport equipment, foodstuffs,
chemicals and manufactured
goods. In 1969 the total was $456,-
900,000. In the first six months this
year, the sum has skyrocketed to
The foreign assistance program
is being reduced by 10 per cent
under the President's program,
but it has not yet been decided
whether the cuts will be applied
regionally or country-by-country.
In either case, Israel is not yet
affected by this cutback, since she
has not received this kind of "for-
eign aid" from the U. S. in 10
The new Foreign Aid Bill be-
fore Congress, calling for $3.2
billion in economic and military
assistance, does include Israel,
but knowledgeable observers
said it was much too early to
tell how it will be affected by
the President's 90-day freeze on
wages and prices.

Economic aid in the form of
commodity credits are not be-
lieved affected by the new con-
trols, since they are not under the
jurisdiction of the Agency for In-
ternational Development (AID),
an arm of the State Department.
During fiscal year 1970, which
ended June 30, Israel received
$50,000,000 in commodity credits
and $30,000,000 in credit from the
Export-Import Bank.
Capital that Israel obtains from
the U. S. through the sale of Israel
Bonds and other fund-raising cam-
paigns sponsored by American
citizens appear definitely outside
Nixon's control program. At the
State Department it was pointed
out that no controls are envisaed
on the flow of capital to foreign
countries under the wage-price
The 10 per cent surcharge on im-
ports, it was explained, is based
on the value of the products and
is added to the normal tariff now
in effect. Thus, if a commodity is
imported at a value of $100 and
the present tariff is 5 per cent, the
commodity would cost the im-
porter $105, but a 10 per cent sur-
charge would raise his cost to
$115. Since the freeze blocks any
increase in price to the consum-
er, it was not yet known here who
will shoulder the new surcharge
costs—the American importer or
the Israeli exporter or both.
Israel, it was recalled, put into
effect a year ago a 20 per cent

surcharge on most of its imports.
Both the Israeli and the American
surcharges, a source added, are
not intended primarily to raise
revenue; rather, to effect an equili-
brium in her balance of payments.
Both are seen as temporay meas-




Numbers Speak Louder at UN

screen connected to the computer.
The program can theoretically
perform most of the analogues
of the laboratory experiments on
mouse tumors. An example of
this is the reproduction in the
computer of an experiment in
which cells are labeled with iso-
topes to determine how the label
is distributed among dividing
cancer cells. The experiments
on the computer are paralleled
in the laboratory, and tests
taken every two days on the live
mice are seen to match the
programed results.
Demonstrating the practical use
of such a program, Dr. Zajicek
explains that cancer can be de-
scriped as growth of cells not ac-
cording to laws permissible in the
body. Of chief interest to the doc-
tor attempting to cure it, is the
ratio of cancer cells being born
to those dying. If the number of
cells being born is greater, then
the cancer is growing; therefore,
ways of reducing the ratio are
sought. However, the main prob-
lem is the difficulty of establish-
ing the value of this ratio.
At present, clinical methods of
measuring cell growth are not
precise. New methods are there-
fore being developed. Dr. Zajicek
is using the computer to correlate
the sensitivity of various labora-

tory procedures to measure the
cell growth ratio and determine
the best method.
This eventually would serve as
a tool to recognize cancer better
and determine the most effective
Such experiments require heavy
computation using the Medical
School's new P.D.P. 15/40 com-
puter, the biggest computer solely
for medical purposes in Israel.
Dr. Zajicek says he recognized
the importance of computers in
the medical field after he had
worked for several years in can-
cer research. Realizing the need
for specialized education, he
studied mathematics and com-
puter science for one year at the
University of Chicago.
He then went to the National
Institute of Health, Bethesda,
Md., where he specialized in ap-
plication of computers in the
medical field.
On Dr. Zajicek's return to Is-
rael, the medical school acquired
the computer, and in May of this
year set up the computer unit
which he now heads.


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Computer Simulates Cancer Growth in Mice at Hebrew
University's Research Project, States Ur. Zajicek

JERUSALEM—A computer pro-
gram which simulates the growth
of cancer tumors in mice has been
developed by Dr. Gershom Zajicek,
a senior lecturer in experimental
medicine and cancer research at
the Hebrew University-Hadassah
Medical School in Jerusalem, in a
project using computer modeling
as a tool in human cancer re-
search. This is a new field of
medical research into the actual
behavior of cancer.
The cancer under survey is the
Ehrlich Ascites tumor of the
.house. In the laboratory experi-
ment, the tumor is transplanted
into the mouse= and the cells repro-
duce rapidly until, on the 17th day,
the mouse dies. The behavior of
this tumor was simulated on the
computer: each theoretical cancer
cell is represented by a word, and
these multiply according to the
rules known from laboratory work.
Every hour in the normal tumor
development is condensed into
one second of computer time, thus
showing the entire life of the
tumor in the mouse in about seven
minutes. By introducing new var-
iables, Dr. Zajicek can run the
program through different condi-
tions and see every step. Results
eventually will be projected in
written, pictorial, graphic and nu-
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