58
THE DETROIT JEWISH NEWS
Friday, February 8, 1985
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NEWS
(
Israel Economy Revamped
Tel Aviv (JTA) — An eight-
drastic reduction or elimination of
its price support subsidies on
month economic program to dras-
many basic goods and services.
tically reduce public and private
Postal rates have gone up by 100
spending, increase government
revenues and raise foreign cur-
percent and the cost of electricity
was raised 25 percent for domestic
rency reserves, already at a
consumers and 54 percent for in-
dangerous low, took effect at mid-
J
night Tuesday shortly after it was
dustry. But the prices of many
other basics will be held down.
approved by the Cabinet meeting
Dollar or other foreign
in special session.
The new program aimed at eco-
currency-linked bank accounts
nomic recovery, replaces the
which can be withdrawn only in
shekels will pay interest to depos-
three-month wage-price freeze
itors if they remain in the bank for
package instituted 'last Novem-
one year. Previously, interest was
ber, which expired Monday. Em-
paid on accounts closed after three
manuel Sharon, director general
months. The measure is intended
of the Finance Ministry, said the
to absorb excess cash in circula-
new measures should save some
$200 million in foreign currency
tion.
by reducing purchases of im-
Sharon said the new measures „ yl
ported goods and curtailing travel
and taxes would discourage Is-
abroad. The government also ex-
raelis from taking dollars out of
pects to realize some $350-$400
the country and help stem the
million from various new taxes
Treasury's fast dwindling foreign
and levies, Sharon said.
currency reserves.
A key measure of the eight-
The Bank of Israel announced
month package is doubling the
last week that foreign currency
travel tax for Israelis going
reserves fell by 11 percent last
abroad from $100 to $200 per per-
month. They now stand at $2.3 \-\
son and a 15 percent tax on airline
billion, well below the $3 billion
tickets sold in Israel. -
economists consider the
A three percent tax has been
minimum safe operating level.
imposed on cars, privately owned
There was no immediate public
boats and aircraft. The deposit
reaction to the new measures. )
surcharge on imported consumer
Shops and supermarkets reported
goods has been raised from 40 to
no panic buying. But many eco-
60 percent but will be reduced by
nomic commentators are criticiz-
three percent a month beginning
ing the new economic program for j
in March. The import ban on 55
its contents and for the way it was
luxury items, imposed last year
announced after many delays,
will be lifted.
leaks and denials of earlier an-
The government expects to
nouncement.
realize substantial savings by the
d
.
Terror Group Claims Role
In Death Of IDF Soldier
Jerusalem (JTA) — The Popu-
lar Front for the Liberation of
Palestine (PFLP), a Damascus-
based terrorist group, claimed re-
sponsibility this week for Mon-
day's murder of an Israeli soldier,
Corp. Aharon Avidar, in the West
Bank town of Ramallah.
A 'PFLP statement from
Damascus said one of its units at-
tacked a group of Israeli soldiers,
killed one and wounded others.
But the 29-year-old Corporal was
murdered by a lone gunman who
fired a single shot at him as he
stood guard at the gate to the gov-
ernment office compound in
downtown Ramallah. The killer
escaped in the crowded Streets.
About 150 shops in the vicinity
of the killing remained closed
through Tuesday by order of the
civil administration as security
forces continued to search for the
assailant.
Stones were thrown at an Is-
raeli schoolbus in Ramallah
Tuesday morning, near the Amari
refugee camp which had been
placed under curfew following the
.
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-
New York — The 18th Quad-
rennial congress of the Interna-
tional Council of Nurses will be
held in Tel Aviv June 15-21. Some
10,000 nurses from 100 different
countries are expected to attend.
killing. No one was hurt and there'
was no damage.
In a related development, Pre-
mier Shimon Peres has implicitly
warned West Bank settlers that: -/
the government would not
tolerate their taking the law into
their own hands.
Peres, speaking at Sunday's
Cabinet meeting which convened
to discuss the mounting tension in
the administered territories and
claims of the government's failure
to protect settlers from Arab ter- \ 1
rorists, said the policy of the gov-
ernment is a soft hand toward
law-abiding citizens Jews and
Arabs alike, and a hard hand
toward terrorists. But, he
stressed, only the government
and its law enforcement agencies_ \
will enforce the law in the ter-
ritories and no other elements 1
will be allowed to take the law
into their hands.
Only hours before Peres spoke,
hundreds of Jewish settlers, de-
manding harsher measures
against the Arab populace,\
blocked key roads in the territory
with their cars. The demonstra-
tion, which created mammoth
traffic jams, was a protest against
the government's alleged failure
to protect the roads.
The settlers moved their ve/
hides after nearly two hours, `
avoiding a clash with police.
Jewish militants in Hebron how-
ever uprooted 35 Arab-owned
fruit trees which they claim be-
longs to Jews.