Deputy Premier David Levy told visiting American Jewish leaders today that the only people who can make decisions for Israel are those who live here.
Speaking in Hebrew at a luncheon to the Conference of Presidents of Major American Jewish Organizations, Levy stressed that while Israel Is constantly being criticized It has no other choice but to pursue the policies it is following.
He was critical of the Reagan Administration for not keeping Israel informed on the meetings now going on in Washington between President Reagan and King Hussein of Jordan and Egyptian President Hosni Mubarak.
Levy talked about the critical need to close the social gap in Israel. He said while there was an imperative need to improve the economy, there could be no solution which created large-scale unemployment.
ECONOMIC SITUATION ASSESSED
Earlier, the Presidents Conference heard, in separate sessions, Trade and Industry Minister Gideon Patt and Energy Minister Yitzhak Modal declare that Israelis need to cut their standard of living to improve the economy. Patt said that while Israel’s inflation was high, it was not really 200 percent but actually 25-27 percent in dollars.
He said that it is difficult to cut the budget because 28 percent went for defense and 38 percent is allocated to servicing the foreign debt. However, Patt said there was a good chance “if the present trend of the past few months continues that Israel could cut its annual debt of $3-4 billion by $1 billion because of an increase in exports.
Patt argued that in the future Israel must concentrate on high-technology exports because it cannot reduce its unfavorable trade balance by exporting only “pantyhose ” and “bathing suits.” He said a meeting will be held in May in which representatives of major firms will be brought here to interest them in investing in Israel.
He said he had been told by foreign company heads that they see Israel as a good place to locate their companies because of its “political stability.”
Patt stressed to the Americans that while Israel would now be getting all of its military and economic aid from the U.S. as a grant, it returns all this money to the U.S. because it makes all its purchases there.
Tomorrow, the Presidents Conference delegation will meet with Labor Party leader Shimon Peres and then with Defense Minister Moshe Arens and other Defense Ministry officials. They will visit with President Chaim Herzog on Thursday and wind up their visit with a dinner at the Knesset Thursday night which will be addressed by Premier Yitzhak Shamir. (Separate story on Presidents Conference, P. 2.)
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