Israel to Announce New Economic Policy on Wednesday

Announcement of government plans to check inflation and improve the economic situation in the country will be made in Parliament Wednesday by Premier David Ban Gurion, it was officially stated here today. The local press today indicated that no matter what else the government proposes, it will not recommend the devaluation of the Israeli pound.

The entire population is nervously awaiting the Premier’s announcement and Parliament’s reaction to it. The government’s plans have been kept a strict secret against the possibility of leaks.

The Cabinet today continued its deliberations on the recommendations proposed last Thursday by a special Ministerial committee on how to deal with the economic situation. At the conclusion of the meeting, it was announced that the government had appointed a 32-member economic advisory board on which will be represented the various economic groups in the country, including labor, farmers, industrialists, bankers and merchants.

Meanwhile, a special government committee today awarded to the kaiser-Frazer automobile assembly plant in Haifa the first medal to be given annually to an industrial establishment which contributed the most to the economic development of Israel during the preceding year. The committee making the presentation was composed of representatives of the Ministry of Trade and Industry and the Treasury Department.

A disagreement between the Palestine Potash Company and the Israel Government, which is now a partner of the corporation in the exploitation of Dead Sea mineral resources, may postpone the resumption of activities at the company’s plant, it was learned here today. The government has proposed S. Sipstein, former manager of the port of Tel Aviv, as general manager of the company, but he has not been accepted by the company.