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It's a bond of trust our family has established with all our customers...a bond of trust that you and your family can count on today...and into the future. 755 West Big Beaver at 1.75 Main Floor Top of Troy Tower, Troy, Michigan 48084 362-4500 62 FRIDAY, FEBRUARY 9, 1990 COATS UNLIMITED Sterling Heights Sterling Place 37680 Van Dyke at 16 1/2 Mile 939-0700 Oak Park Lincoln Center, Greenfield at 10 1h Mile 968-2060 West Bloomfield Orchard Mall, Orchard Lake at Maple (15 Mile) • 855 9955 - Olim's Needs Not Met In Israel's State Budget Jerusalem (JTA) — The Treasury submitted a $32 billion state budget for fiscal 1990 to the Knesset last week that underestimates by more than half the number of immigrants from the Soviet Union expected in Israel this year. The $900 million ear- marked for immigration provides for 40,000 newcomers. By the time the budget was completed, esti- mates had been revised up- ward to 100,000. Finance Minister Shimon Peres said the budget short- fall in absorption costs would have to be made up through overseas loans and the sale of state-owned corporations and commercial bank shares. Treasury experts said large-scale aliyah has its good and bad sides, as far as the economy is concerned. It is expected to contribute to the surging inflationary trends and mounting unemployment. And absorp- tion costs are likely to in- crease the foreign debt. On the positive side, however, the influx of im- migrants will boost con- sumption and nudge the economy back to renewed growth, one of Peres' major goals. In fact, the finance min- ister described the budget Monday as "a bridge from the period of economic slowdown to one of economic growth." But it spells some new hardships for Israelis, estab- lished citizens and im- migrants alike. The value- added tax will go up, as will the costs of subsidized goods and services, including fuel, water, milk, cigarettes and public transportation. Parents will have to pay for an extended school day, whereas elementary edu- cation until now has been virtually free. Child- support allowances will be reduced, as well. The Treasury will abolish tax exemptions for students, working women, residents of development towns and workers employed on late- night shifts. The marginal income-tax rate, now 51 percent, will be reduced. The sales tax will be cut and the Defense Min- istry will reduce the number of days of active duty re- quired of reservists. Peres told the Knesset that the fate of the economy in the next decade would be de- termined by peace or its absence, the intifada, securi- ty needs and the scope of aliyah. He said the four main goals of the new budget are creating conditions for econ- omic growth, minimizing the government's role in the economy, correcting the im- balance in the distribution of income and absorbing im- migrants. In the past year, the gross national product rose at a per capita rate of 2..5 per- cent. Industrial production increased by 5.5 percent. The foreign debt went down and tourism picked up. But the annual inflation rate exceeded 20 percent, foreign investments con- tinued to lag behind needs and unemployment soared to 9 percent. U.S. Opposes PLO's U.N. Ties Geneva (JTA) — The United States will continue to oppose efforts by the Palestine Liberation Organ- ization to gain admission into specialized agencies of the United Nations, the U.S. Ambassador to the United Nations in Geneva, Morris Abram, said recently. Abram spoke in response to questions about the World Health Organization's Gen- eral Assembly, which will convene here in May. A PLO petition for mem- bership with the status of "State of Palestine" was submitted in 1989. Action on it was deferred to this year. Abram observed that "the specialized agencies af- filiated with the United Nations in Geneva are of strictly humanitarian character and not political" He added that "the right place for the PLO to appeal is the (U.N.) General Assembly, which is a polit- ical organ. But they failed there, so they shamefully br- ing it to the specialized agencies in Geneva. "We will continue to op- pose their demands. It is in the interests of everyone to drop it," Abram said. The American envoy also stressed that the United States will continue to block one-sided resolutions aimed against Israel at the con- ference of the U.N. Human Rights Commission opened here Jan. 29.