Finance Minister Yehoshua Rabinowitz predicted today that the stagnation in Israel’s economy that has been in effect since 1974 will continue through this year. He said the gross national product will increase by only one to two percent as compared to an annual growth of 10 percent up to 1973.
Rabinowitz’s remarks were made to 100 American and Canadian Jewish leaders who are here for the 1976 Jerusalem Leadership Conference of the Israel Bond Organization led by Bonds general chairman Sam Rothberg.
The visitors were told by Rabinowitz that inflation will continue, with prices going up some 30 percent. But the Finance Minister said the government’s new economic policy is achieving results and has surpassed the targets set for it in the first half of 1976.
Despite a $100 million increase in military imports the balance of trade deficit should go down about $200 million, Rabinowitz predicted. He said the government should be able to reach its goal of doubling production by 1980 through the investment of $2.8 billion, the major share coming from Israel Bonds, and by shifting some 6,000 workers from service jobs to industry.
OPPOSED TO ARMS SALES TO ARABS
The Israel Bond group was also told by Defense Minister Shimon Peres that Israel may need permission from the United States to sell the Israel made Kfir jet interceptor since it has an American engine. At the same time. Peres said Israel has made it clear to the U.S. that it opposes massive arms sales to the Arabs even if they contain guarantees. “We would rather have no guarantees and no arms shipments,” he said. He said Israel can assure the U.S. “that Israel will do everything to relieve the Middle East from the need for arms. All we want is peace.”
Peres also told the Bonds leaders that while there have been some technical violations of the Sinai agreement by the Egyptians, the agreement had brought about a positive change of the atmosphere due to the opening of the Suez Canal and the reconstruction of Egyptian canal towns. He said the Syrians are also strictly adhering to the agreement on the Golan Heights although they have not changed their hostile attitude to Israel.
During the weekend, the Bond leaders were received at the home of President Ephraim Katzir, met with Jerusalem Mayor Teddy Kollek and the Foreign Ministry’s Director General Shlomo Avineri and laid wreaths on the graves of former Chief of Staff Gen. David Elazar and Lt. Col. Jonathan Nethanyahu who was killed during the Israeli rescue mission in Uganda.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
