20 Friday, February 15, 1980
THE DETROIT JEWISH NEWS
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Israeli Cabinet OKs Budget
JERUSALEM (JTA) —
The Cabinet Sunday ap-
proved a budget ceiling of IL
405 billion for the fiscal
year 1980-1981, beginning
April 1. It is based on a pre-
dicted inflation rate of six
percent per month for the
first six months of the fiscal
year and a four percent rate
thereafter.
But economic experts
contended that the new
budget is already obsolete
since it is based on the value
of the Pound as of October
1979. The Pound has since
eroded by another 30 per-
cent and in those terms the
true budget amounts to IL
653 billion.
Approval of the budget is
regarded as only a tempor-
ary victory for Finance
Minister Yigal Hurwitz.
An understanding was
reached among the var-
ious ministers last week
to extract additional
funds for housing, wel-
fare and settlements from
the budget reserves. This
would leave the treasury
with virtually no reserves
and Hurwitz may have no
choice but to abandon his
IL 405 billion ceiling.
Hurwitz himself said that
the budget will be updated
re
Invited
by mid-year according "to
the developments in the
economy."
According to the treas-
ury's forecast of a limited
rise in the inflation rate, the
exchange rate of the Pound
to the dollar will be IL 50-$1
by next September. The
prices of basic commodities
such as oil fuel, bread and
public transportation will
be some 50-60 percent
higher than at present.
Economic observers noted
that the treasury made a
point of predicting a modest
rise in inflation because a
higher forecast would have
created a public reaction
that would make such a
forecast a self-fulfilling
prophecy.
In Tel Aviv, public
medical services were
curtailed Sunday when
doctors began a work
slow-down to protest the
four percent cut in the
health budget which will
lead to the dismissal of
many specialists on short
term contracts.
The doctors warned that
if any of them receive a dis-
missal notice, all physicians
in the hospital involved
would tender their resigna-
tions.
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Jordanian, Dayan, Kollek
Meet on Middle East Issues
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557-6644
JERUSALEM (JTA) —
Former Foreign Minister
Moshe Dayan, accompanied
by Mayor Teddy Kollek, vis-
ited with Anwar Nusseibeh,
the former Defense Minis-
ter of Jordan who is re-
garded as King Hussein's
unofficial representative in
Jerusalem.
Nusseibeh insisted af-
terward that there was no
special significance in their
30-minute "chat over cof-
fee" at his East Jerusalem
home.
He acknowledged, how-
ever, that "We talked about
problems which are upper-
most in our minds, namely
the Palestinian issue in
general and the future of
Jerusalem."
He said there was noth-
ing new in his positions
r
as he presented them to
his guests, namely that he
rejects the Camp David
accords as a basis for re-
solving the Palestinian
issue and supports a re-
division of sovereignty
over Jerusalem.
Nusseibeh stressed, how-
ever, that he did not want to
see Jerusalem divided phys-
ically again.
Dayan is an independent
member of the Knesset.
Nusseibeh is chairman of
the East Jerusalem Electric
Corp. and recently led a pro-
test against the Israeli gov-
ernment's declared inten-
tion to take control of that
company at the end of this
year.
He said that this issue
was raised in his conversa-
tion with Dayan and Kol-
lek, "but only incidentally."
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UNITED NATIONS
(JTA)
Donald McHenry,
the United States Ambas-
sador to the United Nations,
is visiting the Mideast on a
two-week seven-nation
tour. Before leaving, he met
with Israel's ambassador to
the United Nations,.
Yehuda Blum, to discuss
the situation in the region.
The meeting was held at the
Israeli official's residence
because he is confined to bed
with the flu.
McHenry will visit Egypt,
Israel, Jordan, Lebanon,
Kuwait, Saudi Arabia and
Tunisia.
The American UN Mis-
sion said the purpose of
McHenry's trip is to explore
"substantive, bilateral and
regional issues- of concern
particularly as they bear on
the ambassador's respon-
sibilities at the UN."
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