Ben-guion Secures Labor Backing of Govt.’s New Economic Policy

Leaders of the Government and of the dominant Mapai Party obtained the backing of the Government’s new economic policy from Mapai members of Workers’ Committees from all over the country, who met here last night to discuss the policy that resulted from the devaluation of the pound and the demand by many workers for early increases in the cost-of-living allowances.

Led by Prime Minister David Ben-Gurion, the speakers included Finance Minister Levi Eshkol, Minister of Agriculture Moshe Dayan and Aharon Becker, one of the top leaders of Histadrut, the Israel Federation of Labor. All the leaders pleaded for the support of the new economic policy, and for the necessity of preventing early cost-of-living allowance:increases for the sake of the country’s economy.

Representatives of the Workers’ Committee told the leaders that what they desire is not increases of the allowances but stabilization of prices. Although they backed their leaders, the committee representatives sought assurances that the leaders personally would be among the first to set examples of austerity. Both Mapai and the Government now have the support of the Mapai members of the Workers’ Committees, though there will be some advances in cost-of-living allowances before Passover.

Meanwhile, Communists continue to try to stir up opposition to the new economic policy. At a series of Communist-inspired meetings, workers were called on to strike on behalf of “immediate” payment of “realistic” cost-of-living allowances. Until now, most of the Communist appeals have not succeeded, although some Workers’ Committees have announced they will support the Communist demands.