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Israel Cabinet Settles Dispute over Policy on Investments

A dispute between the Ministry of finance and David Horowitz, Governor of the Bank of Israel, over the latter’s charges that the Treasury failed to carry out necessary anti-inflationary measures following last February’s devaluation of the Israel pound, was taken up today at the weekly Cabinet meeting.

In a report issued last week, Mr. Horowitz had charged that the Government was following a policy of “exaggerated” encouragement of investments which, he said, would only lead to further inflation but not to economic expansion. Mr. Horowitz appeared before the Cabinet today to defend his report which the Finance Ministry had disputed.

Before his testimony today, Mr. Horowitz met twice with Finance Minister Levi Eshkol in an effort to iron out the differences between them over the report. After hearing explanations from Mr. Horowitz and the Finance Minister, the Cabinet decided to accept the latter’s recommendation to regard the matter closed, with a statement to be published shortly by the Finance Ministry.

Today’s Cabinet session was chaired by Mr. Eshkol as Acting Premier, in the absence of Premier Ben-Gurion who is preparing for a month’s visit to the Scandinavian countries.

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