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Crime Report Gets Mixed Reactions

February 21, 1978
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The report charging that organized crime infests many areas of business and commerce in Israel drew mixed reactions today. The diamond trade objected furiously to allegations that much of its transactions are illicit. The seamen’s union acknowledged that smuggling was widespread and pledged cooperation with the authorities to end it. Politicians who have been crusading against crime expressed satisfaction that they were shown to be right while many officials had been denying that organized crime exists in the country. Justice Minister Shmuel Tamir hailed the report’s recommendation to establish a permanent ministerial committee to enforce the law.

But Moshe Shnitzer, president of the Diamond Exchange, threatened to sue the committee members for libel unless they withdraw their charge that black market money controlled by criminal elements runs much of the diamond business. He called the accusation unfounded and convened an emergency meeting of the Exchange members to consider counter-measures.

Capt. Yeshayahu Grauman, head of the seamen’s union, said the union accepted the committee’s recommendations. He promised that any seaman who is prosecuted more than once for smuggling would have his license revoked. Formers in general, were happy with the committee’s report. They claimed that thefts of agricultural products cost them IL 110 million annually. The committee recommended that the control, inspection and transportation of agricultural produce be integrated under a single authority which gives the farmers reason to hope that thefts can be cut down.

Wholesalers and retailers of fruits and vegetables had no immediate comment on the section of the report charging that much of their business was carried on with black market money provided by organized crime. Some wholesale merchants claimed that the huge gap between what the farmer is paid and what the consumer must pay for produce did not reflect organized criminal activity but merely the presence of too many middlemen.

Likud MK Ehud Olmert, who claims credit for initiating the anti-crime crusade, said the report vindicated his accusations that top government and police officials had been covering up the pervasiveness of organized crime. He specifically charged former Police Minister Shlomo Hillel and incumbent Police Inspector Haim Tabori with brushing aside his repeated warnings against criminal activity.

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