A plan calling for the immediate stabilization of prices in an attempt to improve Israel’s economic situation has been submitted by Minister of Trade and industry Peretz Bernstein to the Cabinet’s special Ministerial Economic Committee it was learned here today. The plan, which calls for a price freeze, has aroused considerable interest in all political and economic circles.
It is based on the assumption that current consumption in Israel must be covered in the immediate future by increased local production and by more exports which will bring in the necessary foreign exchange to pay for imports. It also assumes that eventually investment for expansion of production must be raised from local savings. Price fixing is recommended regardless of the relationship between the pound and the dollar, which now rests at 1. 8 pound to the dollar.
The newspaper Maariv today reported that Dr. Bernstein has approached the Histadrut with a proposition that it agree to a wage freeze in order to help the plan succeed. The labor federation has not yet replied to the Minister, the newspaper said.
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