The existing austority program in Israel must not be regarded as a permanent state of affairs, Dov Joseph, Israel Minister of Supply and Rationing and head of the government austerity program, declared here today at a press conference. Dr. Joseph arrived in this country yesterday to represent his government at the nationwide United Jewish Appeal conference called by the U.J.A. Christian Committee in Washington this week-end.
The Israel Minister announced that the cost of living was reduced by almost 20 percent last year. “We have succeeded in bringing prices down by cutting excessive profits. We have also brought down labor costs,” he continued. “Because of reductions in the cost of living index, labor in Israel has been able to take cuts in wages.”
He told the conference that the $100,000,000 American loan was being used to increase the Jewish state’s agricultural and industrial output. He also emphasized the need for foreign currency by the Israel economy. “We are dependent on imports from the outside for a good part of our food,” he said, adding that Israel’s supply of dollar or stealing currencies is limited.
“Politically, we are on the alert,” he stated. “We are anxious to live in amity with our Arab neighbors and have done our best to bring about peace. But we are concerned at the fact that the Arab states have rejected all our overtures and are rapidly being armed on an unprecedented scale with British jet planes, heavy tanks and cannon, which are obviously not required for their defense–and they keep threatening us with ‘a second round.’ To our regret they are apparently not yet ready to come to terms with us. We, for our part, will not be deflected from the pursuit of a comprehensive peace settlement with the Arab states.
“As for Jerusalem, we are there and intend to stay there. It was our ancient capital in the days of King David and Solomon and is now again the capital of the state of Israel. But we are always ready to give all reasonable guarantees to ensure the safety and free accessibility of the Holy Places within our territory and to agree to an effective measure of U.N. supervision in respect to these places, to be exercised by a delegation of the U.N. Many difficulties confront us, but we look to the future with sober confidence,” he concluded.
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