Israeli Advises Divestment of Government Holdings to Finance Security

Joseph Saphir, member of the Israel Parliament and leader of the Liberal Party, called upon the Government today to sell its holdings in private industry, in Development Authority lands, and in State-owned telephone service. He urged the use of the proceeds to cover the expenses of security.

Mr. Saphir told a press conference here that the solution to the nation’s economic problems lay, not in increased forced savings aimed at reducing demand, but in more efficient production and in freezing of salaries.

Outlining a plan to finance the country’s security needs, Mr. Saphir suggested that one-quarter of the required sum be raised by cuts in the regular budget; one-half by reducing subsidies, compensation for higher prices and other items; and one-quarter from the proceeds of the sale of the Government-owned industrial, telephone and land holdings.

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