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Jewish Agency Allocates $39, 000, 000 for 1961-62, Terms Funds Inadequate

Allocations totaling more than $39,000,000 for immigration and rehabilitation programs in Israel, for the fiscal year 1961-62, were approved this weekend by the board of directors of the Jewish Agency for Israel, Inc. a major beneficiary of the United Jewish Appeal. The funds, it was announced, will be used for transportation, reception, absorption, housing, agricultural settlement, the care and training of youth, institutions of higher learning and research debt service and debt liquidation.

Major categories of allocations approved by the Agency’s board were close to $9, 000,000 for immigration, initial absorption and emergency employment; more than $11, 000, 000 for agricultural settlement; $2,500, 000 for immigrant housing; $1,500,000 for youth services and educational programs; and $6,5 00, 000 for debt liquidation.

The allocations, determined by a line-by-line review of a budget of needs totaling close to $60, 000, 000, were based on recommendations submitted by Dr. Isador Lubin, the Agency’s consultant for programs in Israel, and on a year-round study of the operational and fiscal problems of immigrant rehabilitation programs in Israel conducted by the board since the Agency’s reorganization in April 1960.

Dr. Lubin, who presented his first summary report last fall after a two-month stay in Israel, will continue to submit to the board his analyses of specific areas of activities throughout the year. He will soon leave for Israel to supervise the establishment of the Agency’s Jerusalem office, and to gather information for a further study of budgetary requirements to be considered at a meeting of the board early in the fall.

Dr. Lubon stressed that his recommendations for the allocations were based on the board’s decision to keep within the limits of estimated available cash, but held that these funds were inadequate to meet basic needs. He warned that, unless additional funds, above the allocated $39, 000, 000 were forthcoming in the future, rising immigration figures might make it impossible for the Jewish Agency in Israel to provide even the most elementary services for new arrivals.

Dewey D. Stone, chairman of the Agency’s board, expressed deep concern over the long-range effect of totally inadequate allocations. He said that, “while other sources such as the philanthropic campaigns outside the U.S., and allocations from German reparation funds, may bridge part of the gap between our allocations and the rock bottom needs of immigration and rehabilitation programs in Israel, we are creating a financial vacuum which will haunt us in the months to come. “

STONE WARNS OF ‘CATASTROPHIC SITUATION’ IF FUNDS FAIL TO MEET NEEDS

Mr. Stone urged American Jewry to redouble its efforts on behalf of the United Jewish Appeal, so that “our share in this great humanitarian program will more than adequately reflect the full sense of responsibility and the economic resources of the world’s largest Jewish community.” “While our cash allocations have fallen far below the minimum needs submitted to the National Conference of the UJA last December, ” he stated, “rising immigration statistics foreshadow an increased demand on basic services far beyond what was envisaged even a few months ago. ” He added that, if the Agency found itself caught between declining income and rising reeds, “we may be faced with a catastrophic situation.”

Mr. Stone added that, at the time of the reorganization of the Agency, the board had resolved to adhere to two basic policies: to keep allocations within the limits of currently avail able funds, and to stabilize and gradually reduce the Agency’s debt. He pointed out that the recent $65, 000, 000 debt liquidation loan was designed to implement these policies by making possible the orderly liquidation of the Agency’s indebtedness in the U.S. within an estimated 10-year period, and that the line-by-line review of budgetary needs on a yearly basis would assure the most effective use of available cash resources.

“However, ” he added, “in the last analysis, it is not this board but the American Jewish community, expressing itself with greater generosity which alone can assure the full implementation of these policies, without resulting injustices to Israel’s newcomers. “

In addition to financing initial financing absorption services for immigrants in 1961-62, the Agency must also provide funds for present programs being provided to earlier immigrants, he said. Most pressing among these programs is the consolidation of hundreds of new immigrant villages with a population of some 130,000 persons, which will require additional funds estimated at around $200, 000, 000 to be invested within the next few years.

Other present programs include maintenance and training of some 12, 000 immigrant youngsters, the resettlement of some 40, 000 hard-core cases still in transition settlements, and arrangements for permanent care of thousands of social cases. Out of close to 1, 000,000 immigrants who arrived in Israel since May 15, 1948, 250, 000 are still dependent on services financed through UJA funds, Mr. Stone said.

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