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THE DETROIT JEWISH NEWS
32 Friday, March 15, 1985
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The United States and Is-
rael had earlier appeared to be
at an impasse over what
further economic reform
measures Israel should adopt
before the Administration
could present Congress with a
specific aid request. Last
week, Under-Secretary of
State Allen Wallis told the
House Foreign Affairs Com-
mittee's Subcommittee on
Europe and the Middle East
that Israel had not done
enough to correct its economic
imbalances and that contin-
ued high budget deficits, ad-
verse balance of payments,
high inflation and declining
productivity reflected those
imbalances.
But Modai said Friday that
Israel recently took "an impor-
tant measure" when a bill
prohibiting government
spending beyond levels
specified in the budget passed
a first reading in the Knesset.
Reagan Administration offi-
cials, he said, had been un-
aware of this when Wallis tes-
tified. The bill must pass an-
other two readings by the
Knesset before receiving full
approval.
The day after Wallis tes-
tified in Congress, Secretary of
State George Shultz spoke at
hearings of the Senate Appro-
priations Committee's Sub-
committee on Foreign Opera-
tions. He compared Israel's ef-
forts to control its economic
crisis to "clamping a lid on a
boiling pot," rather than turn-
ing down the heat below it.
Modai said he told Shultz
"that since I was a kid I was
taught by Mommy that when
you come across a boiling pot
and it boils in your face, the
first thing you should do is put
on the lid and then start cool-
ing off whatever is in the pot."
This, he maintained, has been
Israel's approach to its
economy. "Now," he said, "We
Yitzhak Modai:
Reaches Agreement.
are at the stage that we've
quenched the fire and we have
started cooling it."
On Friday, Modai told the
Conference of Presidents of
Major American Jewish
Organizations that he and
Shultz "agreed that Israel is
taking the right measures but
the question was whether they
were drastic enough."
He said those measures in-
cluded cuts in government
subsidies and cuts in the na-
ti9nal budget, including the
defense budget. He said that
the American officials want to
see an end to the linkage sys-
tem in Israel where every-
thing is linked "to the dollar or
the index."
According to the present
system, workers salaries are
linked to the cost of living
index and are raised auto-
matically when the index
rises. Modal said, "I hate this
sytem too," but it cannot be
changed at this time because
"the Labor Party cannot go
along with it."
The Israeli minister said
that the government is deter-
mined not to seek economic re-
covery through increased un-
employment. He said it is
wrong morally and is not good
for the economy in the long
run.
Soviet Embassy Official
Rejects Student Petition
Washington (JTA) — An un-
identified official at the Soviet
Embassy here, discovering a peti-
tion left by two American univer-
sity students with whom he had
discussed Soviet Jewry, angrily
hurled the petition out on the
street behind the departing pair.
The petition called on the
Kremlin to permit Jews to emi-
grate and was signed by some 700
students who had come to the cap-
ital last week to lobby Congress.
The lobbying effort was part of the
ninth annual Washington meet-
ing of the Student Coalition for
Soviet Jewry, sponsored by B'nai
B'rith International.
The SCSJ was founded at Bran-
deis University Hillel from which
it expanded nationwide. Most of
the students are leaders of their
college B'nai B'rith Hillel Found-
ations.
In Geneva, the Soviet govern-
ment was accused of trying to ob-
literate Jewish culture in the
Soviet Union.
Andree Farhi, representing the
International Council of Jewish
Women, leveled the charge at a
meeting of the United Nations
Human Rights Commission
which opened a debate on human
rights violations throughout the
world. Mrs. Farhi said her organ-
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