Jewish Agency Adopts $112,000,000 Budget; Cost of Living Index Drops 15 Percent

The Jewish Agency executive has adopted a budget in excess of 40,000,000 pounds ($112,000,000), it was announced today. The executive also accepted the resignation of Dr. Itzhak Gruenbaum as treasurer of the Agency and set Sunday as the date for electing his successor.

The Knesset Finance Committee today appointed a fact finding subcommittee to study proposals for government contributions to the Agency which is facing a financial crisis. The full committee is scheduled to reconvene October 13 to hear the subcommittee’s report.

The cost of living index has dropped 15 percent since the institution of rationing and price control this summer, Minister of Rationing and Supply Dov Joseph announced at a press conference today. He pledged intensification of the struggle against the high cost of living this coming winter. He concluded by announcing that the meat ration will be doubled soon.

The evening newspapers tonight reported that Dr. Shmuel Elyashev, head of the Eastern European Department of the Foreign Ministry, who recently returned from a tour of East European countries and the Soviet Union, has submitted a report which allegedly says that the U.S.S.R. is ready to assist Israel in the economic sphere.

POTASH COMPANY IS ASKED TO PLACE ITSELF UNDER ISRAEL JURISDICTION

Davar, the Mapai paper, today published a reported government plan under which the Palestine Potash Company’s Dead Sea plant will be reopened. First among the conditions, according to Davar, is that the company cancel its British registration and transfer to Israel jurisdiction where the government will obtain the benefit of taxes paid by it.

The government will also participate in the company by investing $6,000,000 toward its total capitalization and allotting it $3,000,000 from the U.S. loan. The newspaper report added that the company has assured the government that it will provide top flight working conditions for its employees in recognition of the fact that they must contend with a very hostile climate.

Israel’s ports handled a record tonnage of shipping cargoes during September, it was reported here. A total of 105,000 tons were handled–71,000 at Haifa and 34,000 at Tel Aviv and Jaffa. The figure for September, 1948, was 44,000 tons for all ports.

ISRAEL EDUCATION MINISTRY ORGANIZING SCHOOLS FOR ARAB CHILDREN

With the reopening of the new school year, the Ministry of Education, in implementation of the new compulsory education law, has begun to organize schools for Arab pupils living in Israel. During the Mandate period, 25 percent of Arab children living in urban areas and 50 percent of the youngsters who resided in rural sections did not attend school at all.

The Education Ministry now plans to enroll all Arab children in school. A network of new school for the Arab children has already begun to operate in Arab areas throughout the country. Municipal councils will be expected to participate in the financing of the schools for Arab youths.