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July 12, 1985 - Image 28

Resource type:
Text
Publication:
The Detroit Jewish News, 1985-07-12

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

is

I

THE DETROIT JEWISH NEWS

28 Friday, July 12, 1985



NEWS

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Reaction Forces Delay
On Economic Measures

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3.

The severe economic measures announced by the government last week
sparked riots in Jerusalem's Katamon quarter. Riot police made 15
arrests as a result of the disturbances.

Jerusalem (JTA) — The gov-
ernment this week put its tough-
est economic measures on hold in
hope of reaching an agreement
with Histadrut and avoiding a
second general strike in less than
two weeks.
Premier Shimon Peres and Fi-
nance Minister Yitzhak Modai
spent part of the week in meetings
with Histadrut Secretary General
Yisrael Kessar and his aides. The
upshot was that the government
postponed invoking the emer-
gency regulations by which it
planned to implement its eco-
nomic austerity program.
Last week's announcement also
sparked rioting in Jerusalem's
Katamon quarter.
One of the first measures would
have been the dismissal this week
of about 10,000 government em-
ployees and people employed in
government-supported local
authorities and public institu-
tions, such as the Jewish Agency.
Also delayed was the new
wage-price freeze that was to be
imposed by decree under emer-
gency powers derived from the
British Mandate regime and re-
tained in Israeli law, though
never used on the economic front.
The intention was to avoid the
lengthy process of union negotia-
tions and Knesset debate, That,
precisely was what infuriated
Histadrut.
Kessar said that Histadrut
could not negotiate under the
threat of decrees it considers un-
democratic and a negation of
agreements signed between the
workers' representatives and
their employers.
Peres said he agreed the
negotiations should be held in a
free atmosphere. The implemen-
tation of economic measures by
decree will therefore be postponed
to allow talks to proceed, he said.
The government apparently
yielded on this point because of
the immediate danger of labor
strife that could paralyze the
country. Local trade union lead-
era and the rank-and-file workers
have emerged as far more milit-
ant than the Histadrut leaders
and may be beyond the letters'
control,

The economic crisis has forced
cutbacks in the defense budget to
the danger point, Defense Minis-
ter Yitzhak Rabin said this week.
Any further reductions, he
warned, will reduce the ammuni-
tion supply to a point lower than it
was when the Yom Kippur War
broke out in October 1973. Israel
was forced to depend on an emer-
gency munitions supply airlift
from the United States to survive
that crisis.
Rabin spoke at a conference of
the United Kibbutz Movement.
Peres, in a radio interview this
week, also expressed concern over
the security effects of defense
budget cuts. But, he said, the
overall economic situation made
the cuts essential.
In a related development, Israel
has stopped all work on the
Mediterranean-Dead Sea Canal
for economic reasons, the
Engineering News-Record re-
ported last month. According to
the magazine, Energy Minister
Moshe Shachal said the 66-mile,
hydro-electricity-producing canal
was only marginally feasible due
to lower oil prices in recent years.
In Washington, Secretary of
State George Shultz pledged the
"full support" of the United States
for the government's tough eco-
nomic measures in letters to Pre-
mier Shimon Peres and Finance
Minister Yitzhak Modal. Shultz
stressed that "The key to success
will, of course, be the full and vig-
orous implementation of your
emergency economic package."
He noted too that Washington's
supplemental economic aid is
nearing enactment by Congress
and would help Israel toward eco-
nomic recovery.

Reparations Log

Sono (JTA) — The West Ger.
man Finance Ministry in Bonn
and a German author, Walter
Schwarz, plan to publish an ex-
tensive documentation on the re-
parations paid by West Germany
to victims and yellowtail of the
Nazi regime,

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