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GRANT Has Great Gift Ideas For FATHER'S DAY ALL AT 25%-50% OFF 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 Cross Pens 50% OFF Ronson Pens 60% OFF Watches up to 50% OFF St. Thomas Leather 40% OFF Cartier Pens Cartier Leather 40% OFF 40% OFF Cartier Clocks 40% OFF i nc. 31313 Northwestern • Farmington Hills 851.7333 Hours: Mon,-Saft 9:3075: Rings, Watches, Chains, Bracelets, Tie Tacks, Tie Bars, Cufflinks, Leather, Pens, Clocks, Radar Detectors, Phones 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,