ATLANTIC CITY (Nov. 15)
A series of economic reforms for Israel was proposed here today at the 31st annual convention of the Mizrachi Organization of America by Herman Hollander of Tel Aviv, Director General of Israel’s Ministry of Trade and Industry.
Mr. Hollander, who is a Mizrachi leader, urged a sharp reduction of income tax in Israel as well as the establishment of a fixed relationship between wages and output “in order to remedy Israel’s unbalanced payment position in international trade.”
Mr. Hollander also proposed complete de-control of many articles for which the government should, in the future, permit free imports without supplying foreign exchange allocations; stricter control of a limited list of commodities for which foreign currency is to be allocated; increase in indirect taxes; liberal policy toward agriculture, trade and industry with a view to encouraging in creased production.
Chief Rabbi Isar Jehuda Unterman of Tel Aviv, addressing the 1, 000 delegates at the convention, appealed to American Jew to buy Israeli bonds in order to help in the integration of thousand of immigrant economically and spiritually. He pointed out that the new immigrants in Israel could easily become embittered and fall prey to destructive propaganda if the difficulties in integrating them, created by Israel’s policy of unlimited immigration, art not solved.
James G. McDonald, former U.S. Ambassador to Israel, told the delegates that Israel is within bombing range of the largest oil deposits in the world and that within Israel there are some of the largest and most modern airfields in the entire Middle East. “No wonder Moscow looks covetously toward these potential bases, ” he said, emphasizing that “a strong Israel is essential to the democracies. ” The sale of Israeli bonds, he added, is laying the groundwork for real peace between Arabs and Jews, because a firm economic base in Israel would compel the Arabs to abandon their present intransigent policy.
Following the appeals by Chief Rabbi Unterman and Mr. McDonald, the convention unanimously adopted a resolution pledging the American Mizrachi movement to the sale of $10, 000, 000 in Israel bonds in 1952.