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October 26, 1984 - Image 3

Resource type:
Text
Publication:
The Detroit Jewish News, 1984-10-26

Disclaimer: Computer generated plain text may have errors. Read more about this.

Friday, October 26, 1984

THE DETROIT JEWISH NEWS

ons ■

NEWS

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Proposals aimed
at easing Israel
economic crunch

Jerusalem (JTA) — Senior gov-
ernment officials were presented
with proposals aimed at easing Is-
rael's economic crunch just one
day after Premier Shimon Peres
opened the Knesset's winter ses-
sion with a call for "economic pa-
triotism."
Speaking before a packed but
solemn chamber, Peres called on
Israelis to "tighten the belts, to
return to productive work and to
buy products in Israel." He hinted
that the government would in-
itiate within a few days "brave"
decisions, but he failed to be more
- specific.
But the premier sought to reas-
sure the Knesset members that
once the government took the
necessary economic measures, it
would make sure that the weaker
segments in the society would not
be deprived, and that the stronger
- elements would not benefit.
Peres, meanwhile, along with
other senior ministers met to hear
proposals for economic reform in-
itiated by treasury and Bank of
Israel experts. It was decided after
the session to negotiate an eco-
nomic package deal with the His-
tadrut, and the employers, which
was scheduled to go into effect
Thursday.
The proposal, unlike the one re-
jected by the ministers, would be
based on the shekel, with the hope
of slowing down the economy. The
wage and price freeze would be
carried out on the basis of a plan
which was proposed by former
Bank of Israel governors, Arnon
Gafni and Moshe Zanbar.
The plan stipulates that for the
next few months, wage earners
will- receive only two-thirds of the
increases in the consumer price
index in a cost-of-living incre-
ment. Basic salaries, prices and
taxes will remain frozen for that
period. The deal is intended to be
implemented on an experimental
basis for the first six weeks after
Thursday.
In a related development, De-
puty Premier and Foreign Minis-
ter Yitzhak Shamir has reacted
cooly to a reported initiative by
American Jewish businessmen to
engage in economic enterprises in
the administered territories.
Shamir, who has always been
opposed to the idea, even while he
was premier, reiterated his oppo-
sition following the reported
meeting between Peres and
Jewish as well as Arab
businessmen in the United States
while Peres was on a visit there
earlier this month.
The businessmen reportedly
told Peres that they were in-
terested not only in economic ac-
tivity but also in improving the
living standards of the Arab resi-
dents in the territories as well as
improving relations between
Jews and Arabs in the U.S.
In New York, the creation of a
Free Trade Area (FTA) between
Israel and the United States that
would eliminate all duties and
non-tariff barriers on trade be-
tween the two countries was
praised by the Reagan Adminis-
tration's trade representative,
William Brock, and by Rep.
Thomas Downey (D-N.Y.), a lead-
ing proponnt of the FTA.

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