Israel Inflation
Moves Soon

JERUSALEM (JTA)—The
Israeli public is bracing for
tough new economic mea-
sures which the government
is expected to announce.
The initial reaction has
been a buying spree to stock
up on everything from basic
food commodities to import-
ed luxury items before their
prices soar out of reach for
the average consumer.
Officials say the measures
are urgently needed to stem
the balance of payments defi,
cit which is mounting to cri-
sis proportions. Higher prices
and higher duties are expect-
ed to curtail demand and
slow inflation. Economic pun-
dits are predicting a steep
rise in the price of oil, al-
ready the highest in the world
in Israel.
The re-instatement of "car-
less" days, a fuel conserva-
tion measure taken after the
Yom Kippur War is expected.
Also under consideration is a
cut in the government's sub-
sidies of basic items such as
sugar. This will drive up
prices but the government in-
tends to reimburse poor fam-
ilies with larger welfare
checks.
The government is also ex-
pected to cut back on public
services though which ones
will be affected is not yet
known. Added import sur-
charges are expected to be
- Coupled with greater incen-
tives for exporters in an ef-
fort to rebuild Israel's sag=
ging trade balance.
Some economists predict a
ban on some luxury imports
and a cut in the foreign cur-
-rency allowance for Israelis
traveling abroad. Officials
insist that there is no plan to
devalue the Israeli pound at
this time. But such assurances
have met with skepticism.
The dollar rate has soared
on both the regular money
market and the black. market.
Long queues were seen
outside - shops selling im-
ported electrical appliances,
furniture and other items
, from abroad. Goods in stock
are being sold at current
prices but no prices are be-
ing quoted on goods that must
be ordered. Purchasers are
required to sign an agree-
ment to- pay the new price
however high it may be.

Allon Meets Sauvagnargues on Middle East, Blasts PLO

JERUSALEM (JTA)—For-
eign Minister Yigal Allon told
French Foreign Minister
Jean Sauvagnargues at a
state dinner here Oct. 31 that
with the Middle East at the
crossroads between war and
peace it was vital for the
outside world to encourage
moderate elements and shy
away from words or deeds
that might encourage the ex-
tremists.
The latter were described
by Allon as pushing for a
new war. "And the most ex-
treme of the extremists, by
its words and deeds, is the
organization calling itself the
Palestine Liberation Organi-
zation," Allon said.
His remarks were a point-
ed reference to France's Mid-
dle East policy which has
given encouragement to the
PLO and its leader Yassir
Arafat who met with Sauvag-
nargues in Beirut recently.
The state dinner at the
King David Hotel ended the
first day of Sauvagnargues'
three-day visit to Israel, the
first ever by a French for-
eign minister.
Allon, who is also deputy

premier, and the French dip-
lomat met at the foreign
ministry for discussions in
which the Israeli foreign
minister reportedly made
clear his government's sharp
disagreement with French
Mideast policies.
Sauvagnargues reportedly
replied that Israeli criticism
stemmed from misunder-
standing and a one-sided
view of the Middle East con-
flict. One source quoted him
assaying that he understood
Israel's fears but suggested
that Israel must reach an
agreement with its Arab
neighbors. "I doubt if you
can afford to win more
wars," the French visitor re-
portedly said.
Sauvagnargues w a s re-
ceived by President Ephraim
Katzir and Premier Yitzhak
Rabin and made a ceremon-
ial visit to the Yad Vashem.
His wife, who is accompany-
ing him, was escorted by
Mrs. Allon on a tour of the
Hadassah Hospital medical
center.
Sauvagnargues arrived at
Ben-Gurion Airport where he
was met by about 200 demon-

strators who turned up at the
airport to protest the visit on
the grounds that France was
allying itself with the PLO.
Demonstrators outside the
foreign ministry chanted
"Arafat assassin, partner of

IBM

Sauvagnargues," a reference
to his meeting with the PLO
leader.

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Cleveland Federation

CLEVELAND (JTA)-Ma-
jor changes in the executive
leadership of the Jewish
Community Federation will
become effective next July 1.
Henry L. Zucker is retiring
as executive vice-president
and Sidney L. Vincent as ex-
ecutive director.
The Federation board of
trustees has elected Stanley
B. Horowitz to succeed the
retirees as chief executive
officer with the title of exe-
cutive director.
Horowitz is presently Fed-
eratiOn associate director and
director of the 1975 Jewish
Welfare Fund Appeal. Zucker
and Vincent will continue
with the Federation as con-
sultants. Zucker will special-
ize in the endowment-founda-
tion field, and Vincent will
specialize in leadership de-
velopment, community rela-
tions and internal relations.

THE DETROIT JEWISH NEWS
10—Friday, Nov. 8, 1974

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