Reports that the Israel Cabinet has decided to reduce imports to 50 percent of last year’s total were published in the Hebrew press today following an extraordinary Cabinet meeting. According to these reports, $263,000,000 will be spent for imports next year, of which some $70,000,000 will be used for food purchases.
It is expected that the funds needed for the imports will be covered as follows: $70,000,000 from the United States grant-in-aid; $52,000,000 from philanthropic drives; $48,000,000 from the Israel bond drive; $60,000,000 from the sale of Israel exports and $12,000,000 from tourism, while the remainder will be made up from various sources, including loans.
The Cabinet speeded up its deliberations to enable Deputy Prime Minister Eliezer Kaplan to leave for Switzerland where he will recuperate from his recent illness. Mr. Kaplan left Israel today and will remain in Europe for three months.
Ehud Avriel, newly-appointed general director of the Israel Treasury, said today that the “position of hard currency is less serious than is generally supposed here and abroad.” He added that “if money is spent for essential commodities, there is the possibility of keeping up the Israel economy and of recovering.” He urged the people of Israel to “carry out voluntarily another year of austerity in order to overcome the present difficulties.” He also paid tribute to American aid to Israel, stating that it is most essential for Israel’s recovery.
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