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Israel Cabinet Meets on Budget Issue; 20 Percent Increase Seen

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The Israel Cabinet held two sessions today chiefly devoted to a discussion of the forthcoming budget to be submitted to Parliament, it was announced here at midnight at a specially convened press conference.

The spokesman refused to give the total budget estimate, deferring that announcement until Sunday, after the Cabinet holds a third session on the problem and completes its work on the regular budget. However, it was learned that the budget will amount to approximately 218,000, 000 pounds, an increase of about 20 percent over last year. The spokesman expressed confidence that the government would be able to balance its new budget as it has the current one.

When the Cabinet completes consideration of the regular budget it will turn to the development budget. Both documents must be ready for submission to Parliament before April 1 when the new fiscal year begins.

In response to questions, the spokesman said that the Cabinet had not discussed whether to permit German flag ships to enter Israeli ports with reparations goods. It is rumored that the government will make a decision on this matter at its Sunday meeting when it hears a report from Dr. F. Shinnar, its representative in Bonn on the reparations pact, who is returning to Israel this week-end.

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