Israel Finance Minister Levi Eshkol flatly denied today reports that Israel’s currency would be devalued. Speaking in the Knesset, Israel’s Parliament, he said categorically that the Government was not contemplating any such action. He cited Israel’s growing reserves in foreign currency.
The Finance Minister also issued a warning to all economic sectors in Israel that “if we continue to demand higher living standards, we will never properly develop our country.” Speaking at the opening session of the fourth convention of the Engineers Union, he criticized the continuous demands of professional groups–engineers, physicians and teachers–for higher wages. He was joined in this criticism by Pinhas Lavon, a top leader of the Histadrut.
Asserting that he feared that “we have been eating up our future homes during the past few years,” the Finance Minister told the engineers that Israel could not expect to match the salaries earned by engineers and architects in other countries. He added that living standards could not continue to rise indefinitely as long as Israel remained dependent on outside assistance.
Mr. Lavon also rebuked the engineers for their demands for higher wages and urged them to look at the question from the national viewpoint. He said that higher wages could be considered when Israel reaches the productivity level of other countries.
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