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Israel Cabinet Increases Budget $93, 000, 000 for Immigration Needs

February 24, 1959
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A special session of the Cabinet has been called for tomorrow to complete final plans for increasing the next year’s fiscal budget, beginning April 1, by 170, 000, 000 Israeli pounds ($93, 500, 000) needed to meet the current, emergency immigration situation.

The regular 1959-1960 budget is before Parliament now. But yesterday, Finance Minister Levi Eshkol presented to the Cabinet’s regular weekly meeting an emergency budget specially earmarked for settlement and absorption of the stream of immigrants arriving here from Eastern Europe.

Mr. Eshkol’s supplementary budget envisages the receipt of half of the extra 170, 000, 000 pounds from abroad. A compulsory loan would be floated here among Israelis who would subscribe 35, 000, 000 pounds ($18,150, 000) through purchases equaling 15 percent of their annual income. An additional 50, 000, 000 pounds ($27, 500, 000) would be raised through indirect taxes and local bond issues.

Tomorrow’s extraordinary Cabinet meeting must make a final decision on Mr. Eshkol’s proposals, and formulate for submission to Parliament the additional necessary legislation.

The Cabinet also discussed yesterday the latest proposals from United Nations Secretary General Dag Hammarskjold, who has suggested a plan whereby United Nations Truce Chief Carl C. von Horn would make a special study of tensions along the Israel-Syrian border. While the Cabinet’s decision on this matter was not disclosed, it is understood that Israel will demand that Syria first permit implementation of an earlier agreement for demarcation of the border. Both the United Arab Republic and Israel agreed with Hammarskjold some months ago to allow such border marking, but Syria has to date failed to finalize the agreement.

PLANS MADE TO RECEIVE 150, 000 IMMIGRANTS

It was indicated today that Israel is making plans to receive as many as 150, 000 Eastern European immigrants this year although the present rate of entry is on the basis of 100, 000. The immigration poses three major problems: dwellings for the newcomers, employment and vocational retraining for those whose skills have no outlet in the Israeli economy.

The most difficult problem is that of employment. Only ten percent of the immigrants have relatives here who can help them to find work. The others, unless they find work, must be given jobs by the Jewish Agency. Most of these jobs are in construction work or in tree-planting for which the newcomers are paid six pounds ($3. 60) a day. But as there is not enough of this work for all, they work only three days a week.

The Jewish Agency and the Ministry of Labor are optimistic that a solution to this will be found. The Jewish Agency helps artisans acquire tools and the Ministry organizes vocational retraining courses. Construction work on towns like Kiryat Gat will provide labor for about half the immigrants. Another 20 percent will find jobs in trade, commerce or services. But some 30 percent will be dependent on Government projects.

Special efforts are being charted to integrate the many professionals among the immigrants. The engineers do not represent a serious problem since they can go to work almost immediately. But physicians, lawyers, accountants and others are handicapped without a knowledge of Hebrew.

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