An analysis of the present situation in Israel, coupled with concrete recommendations on American technical cooperation with the Jewish State, was made public here today by the executive branch of the U.S. Government.
The analysis is part of a report prepared for the U.S. Congress containing basic data on the Mutual Security Program under which the Jewish State will get technical assistance in addition to the $76,000,000 for Jewish refugees in Israel. It suggests, on the basis of experience in Israel, that technical cooperation can succeed there in specific objectives; “namely, to aid in reducing the present economic crisis, to contribute significantly to development, and to increase productivity.”
“The Israelis economy is faced with serious difficulties due in part to efforts to establish a modern state while integrating immigrants in large numbers from diverse cultural backgrounds,” the report says. “Heavy development expenditures occurred in absorbing these immigrants have contributed to serious inflation, and foreign exchange reserves have been badly depleted by the need to import half of the country’s food requirements and nearly all its requirements for capital goods. For the solution of these difficulties Israel requires substantial and comprising supplies for relief, settlement, and economic opportunity.
“Technical cooperation is needed to help implement the large programs which the country must undertake for economic and social absorption of these immigrations,” the report continues.” It is obvious that technical cooperation, by itself, cannot provide the solution of Israel’s economic problems, but experience to date suggests it can succeed in its specific objectives; namely, to aid in reducing the present economic crisis, to contribute significantly to development, and to increase productivity. Under the program, the United States will furnish experts in the fields of agriculture, transportation, health, industry, and public administration.
“In addition, the program includes $76,000,000 of economic aid to relieve the emergency created by the large influx of immigrants, which is a necessary supplement to the generous, but as yet inadequate contributions from public lending, and private institutions. This consists of supplies required for relief and resettlement, as well as for the development of additional productive capacity. The provision of economic aid is a part of a program begun in the fiscal year 1952 designed specifically to help Israel settle her present backlog of refugees.
“Some of these emergency funds will be applied to general development projects because of the importance of expanding power, irrigation, transportation, and industrial facilities in connection with the integration of the backlog of immigrants. Other funds will be applied to the immediate relief needs. Finally, funds will be used in settling refugees by providing them the housing, seed, tools and equipment, livestock, and other items required in order to permit productive employment.”
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