THE DETROIT JEWISH NEWS Israel's Austerity Budget Bitterly Debated JERUSALEM (JTA) — The Cabinet began what is expected to be a prolonged and bitter debate over the $12 billion austerity budget submitted by Finance Min- ister Yehoshua Rabinowitz for the next fiscal year. The draft budget, strongly backed by Premier Yitzhak Rabin and the Bank of Israel which helped to shape it, represents the be- ginning of a three-four-year effort to put Israel's sev- erely strained economy in order by drastic cuts in gov- ment expenditures and __,pefully, substantial in- creases in income from taxes and invigorated export industry. Already dubbed the New Economic Program (NEP), the budget would demand major sacrifices from the public in the form of higher prices, new taxes, reduced services, lower living stand- ards and, most painful of all, a sharp increase in un- employment. The proposed budget, challenged at the outset by various Cabinet members whose ministries would be affected by the reduced spending, was bitterly at- tacked by Histadrut which charged that the heaviest burden would fall on wage earners. The new budget exceeds the current one by IL 21 bil- lion,. (about $3 billion), but in real terms is actually five percent lower because of inflation. It reflects Israel's immense defense burdens. Of the proposed IL 84.2 bil- lion, IL 25.25 billion is ear- marked for defense. The education ministry would get IL 3.16 billion and the health ministry IL 1 billion. The budgets of all other `Arafat Changed Position on Israel' LONDON — (ZINS) — The London Times reports that Yasir Arafat, the leader of the Palestine Lib- eration Organization, as a result of his visit to Moscow, has changed his position on Israel. The paper declares that Soviet leaders con- vinced Arafat to agree on these principles: - To accept the Soviet for- mula on the rights of all countries in the Middle East to live in peace — on the condition that Israel with- draw from the occupied areas, to agree on the re- newal of the Geneva Confer- ence with no pre-conditions and to establish a Palestine ernment-in-exile. he Times correspondent claims that Arafat accepted the first two conditions but rejected the third. ministries wovild fall below the IL 1 billion mark. The treasury hopes to cushion the impact of unem- ployment by transferring about 100,000 workers from public service to productive industries over the next four years and by introducing new incentives for foreign investors who, presumably, would create new jobs. It hopes to add to the gov- ernment's income by impos- ing the long projected five percent added value tax, tightening up on tax collec- tion procedures and audit- ing "cash transactions," a common form of tax eva- sion. Export intensive in-. dustries would be granted tax exemptions and would be protected from the peri- odic devaluation of the pound. The same induce- ments would apply to for- eign investors. - Meanwhile, Premier (Continued from Page 20) BUY OR LEASE FROM Yitzhak Rabin called on the Labor Party to demon- strate political courage by sponsoring severe cuts in government services be- cause of Israel's serious economic situation. He said Israel could not rely on economic assistance from the United States to continue on its present scale and that the aid ob- tainable from world Jewry will not' increase signifi- cantly. UN Endorses Women's Zionism Condemnation with Echeverria last Friday expressed surprise at Mexi-- co's vote Monday and said they Would continue to ad- vocate a boycott of travel to Mexico. The government would The delegation included: drastically reduce its sub- Seymour Graubard of the sidies for basic food Anti-Defamation League of products and public trans- Bnai Brith, Bertram Gold portation which have kept and Richard Maass 'of the prices in those areas more American Jewish Commit- tee, Philip Baum and Will or less stable up to now. In addition, road con- Maslow of the American struction would come to a Jewish Congress, Burton virtual halt as would the Levinson and Rabbi Morton construction of public build- S. Rosenthal of the ADL ings. Although the govern- men promises no more ma- jor devaluations of the pound, the so-called "Creeping devaluation" — a 1-2 percent depreciation ev- ery 30 days — would con- tinue. The pound, which now stands at 7.1 to $1, would decline to IL 10 to $1 by the end of 1976. Even the reduced budget would leave Israel with an IL 3.5 billion deficit next year, but that would be an improvement over this year's IL 5 billion deficit. While every Cabinet minis- ter is expected to put up a last ditch fight for his budget needs, the Cabinet as a whole realizes that without compromises the . national budget would ex- ceed IL 100 billion which the. government simply cannot. afford. Nevertheless, hard bargaining is expected dur- ing the months ahead. Meanwhile, the Central Bureau of Statistics re- ported that the consumer price index rose by 3.2 per- cent in November. Prices are expected to increase by another 2-3 percent this month producing a cumula- tive 25 percent increase in Philly's been whipped. prices for 1975. ANDY BLAU in BIRMINGHAM at •ILSON-CRISSMAN CADILLAC RES. 642-6836 CALL BUS. MI 4-1930 1350 N. WOODWARD, BIRMINGHAM Creative Jewelry trtNe" S one of a kind pieces Fine Gold & Silver Jewelry 10%-30% OFF Latin . American Affairs Department. Also, Lawrence Peirez_of Bnai Brith, Mrs. Rose Matz- kin of Hadassah, Dr. Max Matzkin of Hadassah Asso- ciates, Mrs. Thelma Morse of the National Council of Jew'ish Women; Jacques Torczyner of the American Section of the World Jewish Congress; Max Shechter of Bnai Brith; Samuel Broch- stein of the Synagogue Council of America and Dr. Seymour Weisman of the Jewish War Veterans. READ WHE YOU AR ! 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