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New Israel Cabinet Holds First Meeting; Hears Report on Loan

November 6, 1961
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Israel’s new coalition Cabinet held its first meeting here today. The 16 Ministers, who took their oaths of office Thursday, after the Knesset (Parliament) gave the new Government a vote of confidence by a ballot of 63 to 46, were formally presented to President Izhak Ben-Zvi at ceremonies Friday attended by members of the outgoing as well as of the incoming Government.

The new Cabinet’s first important act of business today consisted of the addition of a new Ministry, one to be responsible for housing. Minister of Development Giora Josephthal was named Minister of Housing, and will now hold two portfolios.

State Bank Governor David Horowitz reported to the Cabinet on his recent participation in meetings held by the boards of directors of the World Bank and the International Monetary Fund. Mr. Horowitz disclosed that negotiations are under way for an Israel loan for the expansion of highways. He said the loan agreement, to affect highways through the country, will be concluded shortly.

The Cabinet today also approved a proposal for Government participation in a company that will conduct a school for hotel management. The Government and the Israel Tourist Corporation will each subscribe to 26 percent of the school’s ownership shares, while the remainder of the stock will be held by the Israel Hotelmen’s Association and by Histadrut, the Israel Confederation of Labor.

Finance Minister Levi Eshkol, discussing possible broadening of the new coalition, told the Jewish Telegraphic Agency today that adherence by any additional parties was subject to joint approval of the present coalition partners–Mapai, Achdut, the National Religious party and Poale Agudat Israel.

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