THE DETROIT JEWISH NEWS
NEWS
FHG, INC.
INTRODUCING BROKER OF
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Tel Aviv (JTA) — The Israeli
Cabinet met this week to discuss
the sensitive issue of budget cuts
in the defense establishment. The
five-hour session on Sunday was
held in the underground "War
Room" at army General Head-
quarters, a venue deliberately
selected by Defense Minister Yit-
zhak Rabin to impress upon his
Cabinet colleagues the serious
nature of cuts in the defense
budget.
Rabin reportedly made it clear
that any cuts in the defense
budget would require a reduction
in research, planning and produc-
tion and the day-to-day activities
of the Israel Defense Force.
In Washington, a Senate
Foreign Relations Committee re-
port warned that Israel's eco-
nomic crisis "could pose as serious
a threat to the security of Israel as
any hostile neighbor in the
region" unless swift, effective
measures are taken.
"American foreign assistance
can help Israel cope with its diffi-
culties and can mitigate but can-
not by itself arrest Israel's prob-
lems of hyper-inflation, labor un-
rest, low productivity, declining
revenues, growing unemploy-
ment and sluggish exports," the
report said. It called for "major
domestic economic reforms" and
the $1.5 billion budget cut now
being applied by Israel's unity
government.
In New York, Israel Minister of
Science and Industry Yuval
Neeman called Samaria "the Sili-
con Valley of Israel" and the
Jewish settlements in Judea and
Samaria the backbone of "Israel's
economy of the future."
Appearing on International
Dateline, produced by Americans
fo a Safe Israel for - National
Jewish Television, Neeman dis-
missed as "complete nonsense"
the charge that Jewish settlement
in Judea and Samaria has been a
burden on the Israeli economy.
He said that under the Likud
government allocations for set-
tlement totalled only one half of
one percent of Israel's budget, and
that the settlements have "at-
tracted young people with good
education" in high technology
fields. "Almost every village has a
firm dealing with software, com-
puters or electronics. Jewish set-
tlement has had a very positive
influence on the economy . . . This
is the new wave of the Israeli
economy."
Neeman argued for continued
settlement growth in the West
Bank, and expressed concern that
Labor Party opposition might
lead to settlement "stagnation
and decay." He predicted 50,000
Jews will be living on the West
Bank by the end of December.
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§?g
Cabinet discusses
defense spending
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