Prime Minister Mahmoud Fawzi of Egypt, is expected to form a new government this week in which the emphasis will be on economic development and the improvement of public services. Mr. Fawzi, a 70-year-old career diplomat regarded as a moderate, resigned with his cabinet last Sunday, barely a month after he was named to the Premiership by President Anwar Sadat. President Sadat promptly asked Mr. Fawzi to form a new government. The reshuffle will be the first among senior officials below the top level since the death of President Gamal Abdel Nasser in September. Fawzi was appointed to fill the post of Premier which Nasser had held in addition to the presidency. But the Sadat regime apparently wants fresh faces in the post-Nasser era. Observers here said that the expected shift of government emphasis to domestic problems was a highly significant development in the Middle East conflict. They believe that despite President Sadat’s recent warnings that renewed warfare against Israel is “very likely” when the present 90-day cease-fire extension expires on Feb. 5,1971, the Egyptian leadership envisage a prolonged period in which there will be an absence of military activity.
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