An official announcement issued last night by the Premier’s office here said that the Israel Government–following consultations with local and foreign economic experts–has decided to expand agricultural production, as “vital to improvement of Israel’s economic situation;” to increase exports’ and to lift the ban on capital import in the form of goods.
The official announcement, indicating that the government is prepared to relax many economic restrictions in order to ease the present difficult situation, said the government will propose in parliament a bill calling for the floating of a popular loan, backed by gold, and will also–through a specially-created association of municipalities–promote a national lottery. Further, tourism will be encouraged through the opening of special tourist shops where goods–including rationed merchandise–will be sold to visitors from abroad.
Another concession which the government made–and which has been sought by proponents of free enterprise–is the sale of urban government land to private buyers undertaking building programs, or paying in foreign currency. More effective tax-collection methods will be introduced, the communique said, and the goverment will undertake “certain measures abroad” to mobilize capital.
MASS IMMIGRATION AND ABSORPTION WILL NOT BE HINDERED
The announcement stressed that “no changes are intended” which would hinder mass immigration and absorption, although “these impose heavy responsibilities on the state and its citizens.” The announcement added: “The government does not promise an easy salvation. The state’s difficulties emanate from defense needs, ingathering of the exiles and conquering of the desert–programs unparalleled by any other country. Those difficulties cannot be removed easily or soon. We also want to combat soon the lack of foreign currency.”
Ingathering of the exiles, the announcement emphasized, increases the Yishuv and its needs more rapidly and on a larger scale than does expanded production. Nevertheless, it was stressed, the number of Jews living in immigrant reception camps is decreasing and there is now almost full employment throughout the country. The government is enlarging its agricultural and industrial output, is increasing its exports and is conducting most development schemes with “great results,” the announcement said.
It was recalled in the statement that the Israel parliament had approved the governement’s “basic economic” policy and the “government will continue to act in accordance” with this policy. From time to time, however, it was added, the government will “review–in the light of constantly-changing conditions–the adjustment and implementation to new needs.”
The announcement also said that immigrants and investors will be permitted to bring in goods under government control. Public bodies operating in Israel will be required to hand in their income from overseas campaigns in foreign currency, while organizations with established institutions–such as Hadssah–will be permitted to bring in goods for their institutions, subject to government approval.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.