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Israel Can Now Purchase Arms but Lacks Funds, High Official Says

October 27, 1958
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For the first time in the ten years of Israel’s history, the state has more political opportunities to purchase the arms it needs than the funds to pay for them, Shimon Peres, director general of the Defense Ministry, told a public meeting here.

He called for renewed efforts to raise the money needed to give Israel at least “qualitative” equality with the Arab armies. If the means are made available, he stressed, the army would be able to buy anything it needed.

Meanwhile, top governmental circles in Jerusalem debate the advisability of calling for a voluntary fund appeal or additional tax levies to finance the suddenly increased immigration. It is reported that Premier David Ben Gurion favors a local fund-raising drive to underscore to world Jewry the Israeli people’s willingness to take on additional burdens to absorb the anticipated increase in immigrate. Finance Minister Levi Eshkol is reported as being skeptical about the results of voluntary fund-raising.

The Ministry of Labor is currently building enough apartments to house 5,000 immigrants a month for the next five months but after that, additional funds will be needed, the Knesset Finance committee was told today.

A Ministry report indicated that six months of preparation were required for the construction of permanent housing. If orders were not given now for needed construction, immigrants arriving six months from now would have to be housed at least in part in temporary lodgings, which cost more than half of the outlay for permanent housing units.

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