Government Seeks to Delay Knesset Vote on Devaluation Issue

Finance Minister Levi Eshkol used delaying, tactics today to prevent an immediate vote in Israel’s Parliament on the Government’s hotly disputed pound devaluation and new economic policy.

A full dress debate on the policy was completed today and the Government had planned to seek a vote of confidence in that policy. On the agenda, however, there are also three non-confidence motions from opposition parties. Eshkol postponed until Monday his reply to the Knesset critics.

In the interim he moved on two fronts to abate the storm created by the impact of devaluation on domestic prices and markets. New concessions were announced to ease the

effects of sharp price rises while the Finance Minister pursued his talks with a coalition partner, the leftist Achdut Avodah, which has threatened to defect from the coalition unless additional relief is assured to workers and farmers hard hit by the effects of devaluation.

RELIEF FOR AFFECTED WORKERS AND FARMERS ASKED BY LABOR GROUPS

The latest Treasury move was a revocation of an increase in the price of Government-controlled fuels–gasoline and kerosene. This was done to meet sharp criticism that the fuel price boosts were in sharp contradiction to Government appeals to manufacturers and dealers to cooperate in keeping down prices.

Achdut Avodah was demanding prompt relief for workers and farmers holding loans at the old rates which have spiralled by nearly two-thirds. The party also has demanded immediate cost of living allowance increases to workers to help them meet the mounting prices.

A deputy for Achdut Avodah, a member of the coalition government, listed in the Knesset last night a number of points in the post-devaluation developments on which he said changes and clarifications were needed. He stressed that the degree of action by the Government in acting on those points would determine the stand of the party on the government’s economic plan. The party has indicated that it wants a rise in the cost of living this month to be reflected in March wages and that for the rest of this year, the cost of living allowance should be revised every three months.

Talks were reported underway with representatives of settlements on the possibility of adjusting dollar-linked loan contracts to the financial capabilities of farmer-debtors. The need to ease the impact of the devaluation on farm settlements was strongly urged by Mapam deputies in debate in the Knesset, Israel’s Parliament, as well as by Achdut Avodah and Mapai speakers.

The possibility developed today that Israel’s pound devaluation might delay introduction of television. Abba Eban, Education Minister, said today that because of the Government’s new economic policy, he would consider the financial implications of introducing television in Israel and bring the matter before the Israel Cabinet in a few weeks.