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January 18, 1985 - Image 31

Resource type:
Text
Publication:
The Detroit Jewish News, 1985-01-18

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

Friday, January 18, 1985

THE DETROIT JEWISH NEWS

'85 LINCOLN

Congratulations

$299

to our sons Brian & David

the new owners of

"DETROIT KNITTING MILLS"

have regularly been overly
optimistic.
Israel's military aid requests
are based on the assumption
that the peace treaty with
Egypt will remain in effect and
that Israel will be able to
withdraw its forces from
Lebanon in the near future. It
also assumes that Israel's
"Order of Battle," or the size of
its overall military strength, will
not change significantly.
Thus, the projection is that
Israel's military needs from the
United States will remain
roughly the same --- $2.233
billion in 1986; $2.312 billion in
1987; and $2.362 billion in 1988.
The Israeli White Paper was
upbeat in speculating about the
impact of the recently enacted
economic measures aimed at im-
proving the Israeli economy.
"The package deal which was
recently concluded brought a
temporary slow down in the rate
I of price increases, accompanied
' by encouraging signs of a possi-
ble change in the public's expec-
tations and behavior," the docu-
ment said. "It is anticipated
that additional restraining
measures, to be implemented
with a gradual and controlled
departure from the price freeze,
will lead to the reduction of in-
flation to a level significantly
lower than that prevailning on
the eve of the freeze."
In the document, Israel also
requested that additional U.S.
economic and military aid be
"made availble as soon as possi-
ble so as to reduce the need to
resort to short-term borrowing,
and (to) enable it to maintatn a
reasonable level of reserves."
The Israeli government, in the
report, also pledged to continue
implementing severe austerity
measures.
"It is recognized that an in-
\ creased level of American aid,
• although essential in the
recovery period, will be insuffi-
cient in itself to solve Israel's
economic difficulties, unless ac-
companied by appropriate
economic policies," it said. "It is
also recognized that the con-
tinuation of the favorable trends
- in the balance of payments is
conditioned on the restraining of
inflationary pressures.
"The Israeli government is
therefore determined to con-
sistently implement the far-
reaching restrictive policies re-
quired to set the economy on the
right track. Such measures will
include, among others, a con-
siderable reduction in the
government budget deficit, a
restrictive monetary policy,
restrictive wage and income
policies, an appropriate ex-
change rate policy, and
measures to encourage savings.
While this restrictive policy will
be implemented, plans and in-
struments for the renewal of
economic growth are to be
prepared for implementation
once stability is achieved."
In underlining the hardships
these restrictive policies will
have on Israel, the paper refer-
red to higher unemployment.

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