New Israel Cabinet Discusses Internal and Foreign Situation

The new Israel Cabinet held its first meeting here last night to consider various aspects of Israel’s internal and foreign situation and to take preliminary steps to reorganize the government along the lines agreed to by the Mapai and General Zionist Parties, the major supports of the new coalition.

Foreign Minister Moshe Sharett reported on political developments in the Middle East. He raised a number of problems connected with the continuous supply of arms flowing from the Western Powers to the Arab states.

Finance Minister Levi Eshkol outlined the government’s financial position, while Premier David Ben Gurion reported on the agreement he had reached with the leaders of the Israel bond drive in the United States. The Cabinet officially approved the new agreement, as a result of which the bond drive leaders withdrew resignations which they had proffered several weeks ago.

A special economic ministerial committee, which will to all practical purposes carry out the government’s basic program, was set up at last night’s meeting. The “inner Cabinet” will consist of the Ministers of Defense, Labor, Finance, Agriculture. Trade and Industry, Interior and Welfare. The Welfare Minister, Moshe Shapiro, was named to the “inner Cabinet” in order to give the religious parties representation.

In addition, Mr. Shapiro, Pinchas Lavon, Mapai Minister without portfolio, and Joseph Serlin, General Zionist Minister of Health, were named a sub-committee to set up all other permanent Cabinet committees. Their choices will have to be approved by the full Cabinet when it next meets. Chaim Cohen, Minister of Justice in the last Cabinet, was appointed Attorney General, a non-Cabinet post. Mr. Serlin, who was originally named Minister of Communications, has switched port-folios with Joseph Saphir, General Zionist leader who originally he1d he Health portfolio.