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Gingrich Interview
Backs Embassy Move

Jerusalem (JTA) — House
Speaker Newt Gingrich (ft-Ga.)
would strongly support the trans-
fer of the U.S. Embassy in Israel
from Tel Aviv to Jerusalem if and
when the issue comes to the floor
of the House of Representatives.

Cabinet Bickers,
Cuts Budget

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and the way events might unfold
in case of a military escalation in
the region.
Gingrich also stressed the dan-
gers posed by fundamentalist
Iran — both as a source and sup-
porter of international terror and
as a country bent on attaining nu-
clear weapons.

In an interview with the Israeli
daily Ha'aretz, Gingrich said it
was Israel's right to determine
where its capital should be and
it was America's duty, as Israel's
ally, to accept that determination
and act accordingly.
He noted that this had been
his position for more than a
decade, implying that there was
no question of his having recent-
ly adopted the stance on
Jerusalem in order to curry favor
with Jewish voters at home.
In his interview, Gingrich dis-
played detailed knowledge of
Middle East issues.
On the subject of deploying
American peacekeeping troops to
the Golan Heights as part of an
eventual Israeli-Syrian peace
treaty, Gingrich said he tended
to support the idea. But he said
his support would come only af-
ter a careful examination and de-
bate of all the possible scenarios,
including the worst-case scenario
of a war breaking out between Is-
rael and Syria.
Gingrich cited the successful
experience of American person-
nel who have been stationed in
the Sinai to enforce the 1979 Is-
raeli- Egyptian peace treaty.
But in considering the Golan,
Gingrich said, Americans would
be asking two tough questions:
the threat of terror attacks, par-
ticularly in light of the Septem-
ber 1983 suicide car bombing of
a U.S. marine base near Beirut
that killed 241 American soldiers;

Jerusalem (JTA) — A divided Is-
raeli Cabinet last week approved
a $239 million cut in government
spending aimed at covering
planned tax refoi ins.
But the Cabinet's decision was
overshadowed by intense bicker-
ing among government ministers
before the cut was approved. The
infighting led Prime Minister
Yitzhak Rabin to warn that he
would invoke his "full authority"
against ministers who did not act
in a civil fashion toward one an-
other.
Rabin's remarks came in the
wake of a scathing memo he re-
ceived from Police Minister
Moshe Shahal, in which Shahal
sharply criticized Finance Min-
ister Avraham Shohat's perfor-
mance. In the memo, Shahal was
quoted as saying the country was
"hurtling full speed toward an
economic disaster."
The Cabinet ultimately passed
the spending-cut plan, with 10
ministers voting in favor and sev-
en against.
The budget reduction will en-
able the government to reduce
the employers health tax by
nearly two percentage points. It
also provides working women
with an additional tax credit to
offset higher health taxes.
The budget reforms, approved
only two weeks after the Knesset
passed its $49 billion annual bud-
get for 1995, amount to less than
one-half percent of the total bud-
get.
Bank of Israel Governor Jacob
Frenkel welcomed the Cabinet
decision, but said it was not
enough.
"I think the changes are in the
right direction," he told Israel
Television. "I would like to see
them in a larger magnitude —
about three times as much as
what was adopted.
"I think our ax burden has
gone up significantly in the past
few years, and it's essential to see
its reversal," Frenkel said.
According to the bureau's fig-
ures, inflation in 1994 stood at
14.5 percent — nearly double the
government's projections for the
year.

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