Emergency Drive Geared for Speedy Action at Rally Feb. 10
Paul Zuckerman, general chairman of
the United Jewish Appeal, will speak at a
special report meeting for workers on the
1974 Allied Jewish Campaign-Israel Emer-
gency Fund 10 a.m. Feb. 10 at Cong.
Zuckerman, who is in Israel for meet-
ings of the Jewish Agency and discussions
with government officials, is expected to
share with the Detroiters some of the
details concerning Israel's current status
as she strives to return to normalcy.
of Israel's humanitarian services are more
than 21/2 times what they were last year.
The results of the war on Israel's economy
and the immigrant absorption needs which
continue to accelerate are the key factors.
THE JEWISH NEWS
A Weekly Review
LXVi, No. 21
In previous appearances at local emerg-
ency fund-raising meetings, Zuckerman,
who serves with Detroit's Max M. Fisher,
on the executive committee of the Jewish
Agency, emphasized that budgetary needs
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February 1, 1974
Highest Pr ice Hikes in Histor y
Stun Israelis in Wake of War
measure, lining up with the opposition Likud, Rakah and Moked factions.
Seven other MKs of the Civil Rights List and Aguda bloc—factions Labor
hopes will join a coalition—abstained.
The negative votes plus the abstentions made it clear that there was
no majority in the Knesset for the extra budget that Sapir claimed was
urgently needed to help pay the costs of the Yomn Kippur War. The two
Laborite rebels—left-leaning Yitzhak Ben Aharon and Lyova Eliav—have
always opposed Sapir's economic policies. But their defection Tuesday night
cast doubt on the strength and stability of any Labor-led coalition govern-
ment that may be formed.
It was, in fact, the first time Labor MKs voted against the government
on a matter of such importance as a state budget, and the Labor alignment
Knesset faction plans an inquiry.
Introducing the supplementary budget, Sapir said that even that sum
barely begins to cover the cost of replenishing arms stocks, wages to reserve
soldiers and compensation for bereaved families which will run into the tens
of billions of pounds.
Before the war, the defense budget comprised 30 per cent of
the national budget, but now it is 50 per cent, the finance minister
said. In terms of the gross national product, defense will consume 40
per cent of the GNP, compared to 18 per cent before the October
war, he said.
BY DAVID LANDAU
Sapir did not explain in detail where he expected to find the
Jerusalem Bureau Chief
to cover the supplementary budget. It was assumed by
JERUSALEM (JTA)—The Jewish Agency's board of governors convened in Jerusalem
that he expected part of the burden to be borne by
this week for the first time since the war, to reappraise Israel's growing needs and world
American and world Jewry, part by loans and grants and part by
Jewry's ability to meet some of them.
such government economies as the slash in price support subsidies
As a result of world Jewry's impressive response to the war crisis, the governors were
on basic foodstuffs.
able to approve an increase—all of it spent on housing—health, welfare, education and absorp-
Sapir said that the price hikes in food and public transporta-
In some areas—such as higher education—the agency has been able to shoulder the state's
tion made across-the-board belt-tightening inevitable. But he prom-
entire costs, leaving the government free to meet its crushing defense expenditures.
ised compensation for the poor, the aged and for large families.
The board of governors—meeting in full plenary Tuesday and Wednesday after committee
Replying to his critics, Sapir said that postponement of the
meetings had prepared the groundwork—approved a target of S1,400,000,000 for the fund-raising
cuts until the 1974-75 fiscal budget is submitted in April
bodies—United Jewish Appeal and Keren Hayesod—over the 18 months from April 1974 to Sep-
would have created an even greater trauma since he intends to
present the controversial added value tax at that time.
The main items in this target are $235,000,000 for absorption; $308,000,000 for immigrant
Sapir defended the added value tax on goods as required by
housing; $92,000,000 for welfare; $41,000,000 for health; $190,000,000 for higher education; and
the European Common Market for all countries in economic relation-
another $75,000,000 for other education projects, grants and stipends; $125,000,000 for agricultural
ship with it. Israel and the Common Market are presently negotiating
Opening the board meeting, chairman Max Fisher of Detroit said the war had deepened
a comprehensive tariff agreement.
Jewish identity with Israel — not only through financial support but in all ways of aiding
Israeli housewives going to the supermarket Monday morning,
Israel. But at the same time the war had vastly increased the agency's duties and responsibili-
money bought one-third less of such commodities as
ties. Fund-raising scope and methods would be closely examined, he said, to see where and
With a warning from Israel Finance Minister Pinhas Sapir that
"economically we are now still in a state of war," Israelis today are coping
with the highest price hikes in their nation's history.
In the wake of a costly war, a cabinet decision Sunday to cut by more
than a half the government's price support subsidies for essential products
is believed to be only the first round in a new chain reaction of price
According to figures published by the Central Bureau of Statistics in
Jerusalem, the immediate consequence of the food price hikes was to raise
the cost of living by 4.2 per cent.
The economic situation is not without political ramifications. Sapir's
IL 11,300,000,000 (about $2,825,000,000) supplementary budget to pay war
costs squeeked through the Knesset by a margin of seven votes Tuesday
night in what observers termed a moral defeat to the Labor alignment and
boding ill for its efforts to put together a viable coalition government.
Two Labor MKs ignored party discipline and voted against the
Jewish Agency Adopts $1.4 Billion Goal
to Help Shoulder Israel's Cash Burden
(Continued on Page 5)
how more could be raised.
Dr. Haber Drafted for 25th Year
Israel's Postwar Needs, Retraining of Youth Worldwide
onfront ORT Leadership With New, Urgent Priorities
By PHILIP SLOMOVITZ
The Yom Nippur
tae 081 operation
in Israel. The human
fallout of the war
Dr. William Haber
NEW YORK—Dr. William Haber has been drafted for many tasks, as arbitrator in eco-
nomic disputes, in labor and other controversies. This week he was induced to continue a great
labor of love, a dedication to one of the great Jewish causes, when he submitted to another
draft: retention of the presidency of the American ORT Federation for the 25th year.
The election took place Sunday morning at the annual ORT convention in the Americana
Hotel here. Prof. Haber, whose role in ORT is not limited to the American scene, and who also
holds the presidency of the World ORT Federation, had urged his associates to elevate to the
presidency one of the several available activists in ORT. But, "the new responsibilities that have
arisen as a result of the Yom Kippur War force me to remain at the helm," Dr. Haber said, "for
just another year." Able available leadership "necessitates development of continuity by en-
couraging some of the young men in our ranks to rise to the high and responsible posts like
ORT's and to keep providing for a great cause."
Dr. Haber joined with other participants in the convention sessions in outlining ORT's
needs. He pointed out that subsidies that were hitherto available from the Israel government,
for tasks in the Israeli ORT schools, are no longer to be expected in the fullest measure, and
that the Jewish communities, especially those in America, are confronted with increased respon-
sibilities to meet the needs that are arising.
(Continued on Page 8)