Problems arising out of the new economic policy proclaimed by the Israel Government and approved by Parliament were discussed today at a meeting of the Israel Cabinet.
Special attention was given to the problem of Israeli students abroad who have been hit severely by the new exchange rates. There are more than 1,700 Israel students abroad. The Cabinet decided that a special committee composed of representatives of the Foreign Ministry, the Ministry of Education and the Treasury Department should look into the problem.
The meeting approved the decision of the Ministry of Communication to grant a temporary 25 per cent increase in transportation fares. The inter-urban bus companies insist on a 50 per cent increase because of the increase in the price of petroleum products.
Because of the indisposition of Eliezer Kaplan, Israel’s Minister of Finance, the Cabinet today appointed Peretz Naphtali Acting Treasurer. Mr. Naphtali, a leader of the Mapai Party, is a member of the Cabinet without portfolio.
Two Arabs will serve as members of Israel’s Economic Council, according to another decision adopted by the Cabinet. The meeting also decided to establish a special Council for Arab Education and Culture within the Education Ministry.
GOLDA MYERSON ARRIVES IN U.S. TODAY
Labor Minister Golda Myerson left Lydda by plane last night for the United States to explain the new economic policy to American Jewry. She will address a special meeting of American Jewish leaders in Washington March 1 and, later, she will also assist the United Jewish Appeal and Israel bond campaigns. She is due to arrive in New York tomorrow.
At a press conference before emplaning, Mrs. Myerson said that during her four-week visit to the U.S. she will not only attempt to mobilize financial and economic assistance but will also seek to round up experts in labor problems for service in Israel. Queried about the effects of the new economic program, the Labor Minister said that the controls are meant to “insure that everyone will get at least a minimum.” Listing the most significant points of the new program beside the financial measures, Mrs. Myerson stressed the campaign to get the workers to accept a system of piece work and working norms, the government’s decision to end the cost-plus system of fixing prices and the introduction of the 47-hour week in government and public institutions.
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