The Cabinet approved a draft law Sunday to establish a second channel on State-run television and radio which would be open to private commercial operators.
The Cabinet decided to compensate daily newspapers for loss of advertising revenue to commercial broadcasters. The Israel Broadcasting Authority will also be compensated for loss of revenue because of the expected decrease of paid public service announcements on the first channel.
Communications Minister Amnon Rubinstein said he expected that 10 private radio stations could begin operations within six months. The second television channel will take longer to set up, he said.
PERES BRIEFS MINISTERS
Premier Shimon Peres briefed the Ministers Sunday on his visit to the U.S. and Canada from which he returned Tuesday. He described his meetings with President Reagan, Secretary of State George Shultz, Defense Secretary Caspar Weinberger and other top Administration officials.
He noted the determination of the U.S. government to support a strong Israel, oppose the Palestine Liberation Organization and to view the peace process as part of peace itself. He said Administration and Congressional leaders praised Israel for its political initiatives and its progress in solving its economic difficulties.
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