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November 23, 1984 - Image 22

Resource type:
Text
Publication:
The Detroit Jewish News, 1984-11-23

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

22 Friday, November 23, 1984 THE DETROIT JEWISH NEWS

AL'S SAVES YOU MONEY!

NEWS

_HELP CUT YOUR HEATING BILLS!_

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MICHIGAN REGION
of
WOMEN'S AMERICAN ORT

invites you to

CELEBRATE THE SEASON

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in Racquetime Mall

26400 W. Twelve Mile Road
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Join Us For A

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Saturday, - December 1st
7:00 - 10:00 p.m
Hors d'oeuvres and Wine
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Sun., Dec. 2nd from 12:00 to 5:00
BEAUTIFUL JEWELRY & GIFTS FOR EVERY OCCASION!
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Checks for all purchases may be made-payable to
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10% of all proceeds will benefit the School Building Program.

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Mail checks to:
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Honeymoon ending?

Continued from Page 1

that when we formed the na-
tional unity government, we
knew who our partners were
and up to now we have not
been favorably surprised."

Minister of Trade and In-
dustry Ariel Sharon, the
hard-line former Defense
Minister who took a dim view
of the unity coalition from the
start, let loose a blast at Pre-
mier Shimon Peres from New
York where Sharon is pursu-
ing his $50 million libel suit
against Time magazine. He
accused the Labor Party
leader of having done "much
harm to Israel's image" by de-
scribing the economy to be "in
worse shape than it really is."

The most important — and
possibly the only significant
achievement of the unity gov-
ernment to date — has been a
wage-price-tax freeze package
of three months duration
which, it is hoped, will curb
the highest inflation rate in
Israel's history. Last week,
Minister of Science and De-
velopment Gideon Patt, a key
Likud Cabinet member, pre-
dicted that the freeze would
end in an "economic catas-
trophe."
Peres, who has been trying
to avoid confrontation, re-
sponded sharply this time. He
noted that the "economic
catastrophe' was what the
unity government inherited
from its Likud predecessor.
The economy at present is
the overriding problem and it
is causing friction within
Likud. Deputy Premier David
Levy of the party's Herut
branch has publicly criticized
the policies of Finance Minis-
ter Yitzhak Modai, a Likud
liberal, which have the back-
ing of Peres. Levy claims
Modai is worsening the condi-
tion of wage-earners. Critics of
Levy say he is trying to curry
favor with workers to improve
Likud's chances in the upcom-
ing Histadrut elections.
Levy denies this. He con-
tends that the drastic cuts in
government subsidies for
basic consumer products and
services make no economic
sense.
Modai insists that the
budget, slashed by $1 billion,
must be reduced by another
half billion dollars if the freeze
package is to have any effect.

Meanwhile, the prospect of
large scale unemployment
owing to additional budget
cuts proposed by the Treasury
has stirred a political furor
and the wrath of Histadrut
leaders who promptly de-

nounced the plan and declared
it would not work.

Sources at Peres' office were
quick to note that the plan has
not yet been discussed with
him and was at the moment,
nothing more than a proposal
by the Treasury.
The Treasury's proposals
are said to include the im-
mediate dismissal of 4,000

The most important
achievement of the
unity government to
date has been a
wage-price-tax freeze
package which it is
hoped will curb the
highest inflation rate
in Israel's history.

teachers, 4,000 defense-
related government em-
ployees, 1,500 employees of
local authorities and several
thousands from the social and
health services.
The government also will be
asked to freeze the construc-
tion of new schools and possi-
bly to close some existing
schools which would force
many teachers to resign. Pub-
lic works would be sharply
curtailed.
One of the immediate reac-
tions was a series of non-
confidence motions presented
in the Knesset today by oppo-
sition parties of the left and
right.
In a related development,
the Cabinet agreed to slash an
additional $550 million from
the state budget, at the urging
of Modai. But the sensitive
matter of where the half-
billion plus cuts would come
from was left in abeyance.
Those details are to be
worked out by a special four-
man ministerial committee
which is expected to come up
with a plan by next week.
The Cabinet also discussed
another politically sensitive
matter — the inevitability of
large scale unemployment re-
sulting from the contraction of
government expenditures.
The Minister of Labor and
Welfare, Moshe Katzav, pre-
dicted a 50 percent increase in
unemployment in the first six
months of 1985 and stressed
the urgency of retraining un-
employed workers for new
jobs. He warned that if unem-
ployment is higher than ex-

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