20 Friday, June 15, 1984
THE DETROIT JEWISH NEWS
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Election economics
Continued from Page 1
Cohen-Orgad and the new
Director General of his
Ministry to discuss eco-
nomic policy in light of the
election campaign. The vot-
ing is little more than a
month away and Cohen-
Orgad has already promised
to submit a bill in the Knes-
set to ban a proposed
economy move that would
affect personal savings.
Nevertheless, most Is-
raeli observers are con-
vinced that after the elec-
tions, should the Likud gov-
ernment still be in power, it
will have to initiate drastic
measures to avoid an eco-
nomic catastrophe.
Meanwhile, U.S. Secre-
tary of State George Shultz
warned the Israeli govern-
ment that without a sig-
nificant effort to solve the
country's economic prob-
lems, even at the cost of re-
duced living standards, U.S.
aid to Israel could be
endangered.
Defense
Minister
Moshe Arens, who met with
Shultz in Washington last
week, disclosed the Ameri-
can view when he briefed
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the Cabinet. The Reagan
Administration seems most
concerned with Israel's
soaring inflation rate. Is-
rael Radio reported that
Washington has asked the
government for a detailed
plan on how it intends to re-
strain inflation.
In the Knesset, MK
Amnon Rubinstein of the
opposition Shinui faction
called for an urgent debate
over the American warn-
ings and over the surprise
resignations of the two
senior Treasury officials.
The two resignations ex-
posed to the public a grow-
ing sense of unease among
some ranking Treasury offi-
cials that the government is
indulging in "election eco-
nomics." Some officials
have charged that election
campaign considerations
prevailed over economic
prudence when the gov-
ernment recently agreed to
generous wage hikes for
regular soldiers and
policemen. The raises are
expected to trigger new
wage demands from other
sectors.
The government also is
faced with an ultimatum
from Histadrut to resume
negotiations for a new over-
all wage agfeement. The
trade union federation said
it would otherwise with-
draw from the collective
bargaining process and
force the government to
deal individually with each
union representing its em-
ployees.
Labor Party leader Shi-
mon Peres said Tuesday
night that he would offer a
definite timetable for the
withdrawal of all Israeli
forces from Lebanon if he
becomes Premier.
The withdrawal "would
take from three to six
months" and could be a un-
ilateral decision, Peres said
in a debate on French tele-
vision with his Likud oppo-
nent, Premier Yitzhak
Shamir. He said his pro-
posal has the approval of
three former chiefs of staff
and a former Minister of De-
fense.
Israel's presence in Leba-
non could be replaced by a
system of advanced warn-
ing stations and a mobile
and flexible force stationed
in northern Israel, Peres
maintained.
But Shamir stressed that
Israel would leave Lebanon
only after it had reached a
satisfactory agreement
with the Lebanese govern-
ment or the local
authorities in south Leba-
non. He said Israel was
forced by circumstances and
history into Lebanon. "We
had no choice," he said.
"Chasing the PLO gang
from our northern border
was a historic must."
Shamir and Peres did not
meet face-to-face during the
hour-long confrontation.
Shamir was, in his office in
Jerusalem and Peres in the
television studio. Both
spoke in French. It was
their first television debate
for the July 23 election.
The Premier avoided dis-
cussing in any detail the fu-
ture of the West Bank. But,
he stressed, that if Likud
wins Israel will not annex
Judea and Samaria. "One
does not annex what al-
ready belongs to one," he
said. He stressed that Likud
would continue its settle-
ment policy.
Peres said a Labor gov-
ernment would stop 'creat-
ing new settlements in
densely-populated Arab
areas, but would leave in-
tact existing settlements.
Both condemned the
Jewish terrorist organiza-
tion recently uncovered in
Israel. Shamir called it a
"deviation" from Israeli pol-
icy and moral attitude.
The two carefully avoided
elaborating an economic
program to solve Israel's
three-digit inflation.
Saturday night, tens of
thousands of people
marched through the main
thoroughfares of Tel Aviv to
protest Israel's continued
presence in Lebanon and
the Jewish terrorist under-
ground on the West Bank,
currently being investi-
gated for acts of violence
against Arabs.
The Peace Now move-
ment, which organized the
demonstration, claimed a
turn-out of 100,000. Oppo-
nents of Peace Now said
there were no more than
30,000. Most observers es-
timated the crowd at
70,000-80,000. The rally,
heavily guarded by police,
was peaceful and unmarred
by incidents. Speakers
noted that "two years have
passed since the start of
what was supposed to be a
24-48 hour cleansing opera-
tion (in Lebanon) and there
are now nearly 600 deaths
with casualties continu-
ing."
The Peace Now rally was
not televised.. The Central
Elections Committee and
the State-owned Broadcast
Authority decided that
television coverage would
amount to electioneering
because 'advance adver-
tisements for the rally had
an anti-Likud tone. The
Supreme Court rejected a
Peace Now appeal against
that decision.
At the same time, De-
fense Minister Moshe Arens
has taken no action to out-
law the Jewish-Arab Pro-
gressive List for Peace
which hopes to participate
in the July 23 elections,
even though he believes it to
be subversive,